Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • Jul 26, 2007

News Details

Corporate | 26 July 2007 07:00

LUDWIG BECK records increase in turnover and corrects forecasts for fiscal years 2007 and 2008

Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG / Half Year Results

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Munich, July 26, 2007 – The Munich fashion house LUDWIG BECK (ISIN DE
0005199905) recorded an increase in turnover and profits in the first half
of fiscal year 2007 as compared to the corresponding period last year and
showed a positive business development in general.

Development of sales

The aggregate turnover of the LUDWIG BECK Group rose by 5.2 % from € 44.0m
to € 46.2m in comparison to the preceding year. The Group’s turnover on
comparable areas even rose more significantly by 6.3 % to € 46.3m (previous
year: € 43.5m) and once more showed a better development than the textile
retail trade in general, which scored an average growth rate of 1 % in the
first six months of 2007 according to ‘TextilWirtschaft’.

Earnings situation

In the first six months of 2007, net profits at group level went up
slightly from € 17.9m to € 18.2m. The net profit margin of 46.8 %
approximated last year’s level (47.1 %). By continued optimized cost
management the expense ratio (expenses in comparison to corresponding
proceeds) which could be reduced by 0.9 % points to 44.1 % fell
significantly below last year’s level (45.0 %).

Group earnings before interest, taxes, depreciation and amortization
(EBITDA) amounted to € 2.8m, thus exceeding last year’s level (€ 2.6m) by
7.7 %. LUDWIG BECK’s profits went up in the first six months as well. The
operative result (EBIT) amounted to € 1.1m in the first six months of 2007,
equaling an increase of € 0.3m in comparison to the corresponding period
last year (€ 0.8m).

The deficit in the accounting period improved by € 0.2m in comparison to
the corresponding period last year (€ -0.5m) and amounted to € -0.3m.

Outlook

The first half of 2007 was marked by an improved consumption climate –
despite of the VAT increase. Economic researchers expect the propensity to
consume to gain even more momentum in the second half of 2007.

LUDWIG BECK AG joins in the optimistic forecasts and expects the company’s
positive business development trend to continue for the rest of fiscal year
2007.

The corporate tax reform enacted in July 2007 will have a positive one time
effect on the group’s earnings situation. The deferred taxes on the assets
and liabilities side will be re-evaluated in accordance with the new tax
rates in the second half of the year. This re-evaluation will imply new tax
yields. In consideration of the consequences of an external tax audit of
the LUDWIG BECK Group, the combined positive effects on the result are
expected to amount to € 0.8m.

Due to the favorable business development and the positive effects of the
tax reform, the Munich-based enterprise corrects its predictions concerning
the net income for the year after minorities from € 1.5m to € 2.5m. € 0.8m
of allowable special earnings due to the tax reform approved by the Federal
Council on July 6, 2007 are taken into consideration.

'With great satisfaction we look back at the first six months of 2007 which
clearly exceeded our expectations, and we are glad to inform our
shareholders about this highly positive development', Dieter Münch, CFO at
LUDWIG BECK AG states. 'This uptrend will be maintained also in fiscal year
2008', Dieter Münch continues.

Within the scope of its well-established Trading Up strategy, the upgrading
of product ranges and departments, the company is presently carrying out
one of its largest renovation and extension projects at the flagship store
at Marienplatz. With a completely new design of the entrance area, various
renovation measures to the ground floor, a completely remodeled passage and
a new façade the ‘Store of the Senses’ will present itself as the new
eye-catcher and showpiece beside the City Hall at Munich’s famous
Marienplatz. The works will be completed in September 2007 and 200 square
meters of additional sales space will then be available.

In addition thereto, the company plans to enlarge the fifth floor to gain
approximately 800 additional square meters of sales space at Marienplatz.
This measure planned for the year 2008 will provide LUDWIG BECK with even
more space to sell individual, exclusive brands and create new sales
potentials.

On the basis of these developments the Executive Board reviewed its revenue
projections for fiscal year 2008 and is now expecting a consolidated net
income for the year after minorities of € 2.5m (previous amount: € 2.0m).

The comprehensive 6 months’ report is published on the Internet under
www.ludwigbeck.de/financial publications. The printed version will be
available on August 3, 2007.

Key figures of the group in €m 01.01.-30.06.2007 (01.01.-30.06.2006)

Gross sales (including VAT) 46.2 (44.0)
Net profits 1) 18.2 (17.9)
Earnings before interest, taxes, depreciation
and amortization (EBITDA) 2.8 (2.6)
Operative result EBIT 1.1 (0.8)
Deficit in the accounting period -0.3 (-0.5)
Result per share (in €) 2) -0.15 (-0.24)
Investments 1.7 (0.9)
Employees (at relevant date, June 30.) 3) 533 (523)
Apprentices (number) 42 (54)

1) Net proceeds from turnover minus costs of material used 2) Reference
figure in 2006 and 2007 3.36m shares 3) without apprentices

Investor Relations contact:
esVedra consulting GmbH
Metis-Corinna Tarta
t: +49 89 288 08 – 133
f: +49 89 288 08 – 149
metis.tarta@esvedra-consulting.com

Controlling contact:
Ludwig Beck am Rathauseck
Jens Schott
t: +49 89 2 36 91 – 798
jens.schott@LudwigBeck.de

DGAP 26.07.2007

Language: English
Issuer: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG
Marienplatz 11
80331 München Deutschland
Phone: +49 (0)89 2 36 91-0
Fax: +49 (0)89 2 36 91-6 00
E-mail: info@ludwigbeck.de
Internet: www.ludwigbeck.de
ISIN: DE0005199905
WKN: 519990
Indices:
Listed: Amtlicher Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart

End of News DGAP News-Service

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