Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • Apr 27, 2006

News Details

Corporate | 27 April 2006 14:16

Ludwig Beck AG: LUDWIG BECK reports balanced EBIT in first quarter of 2006

Corporate-news transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— Munich, 27 April 2006 – The LUDWIG BECK group ended the financial year 2005 with an increase in sales that exceeded all expectations, and the first three months of 2006 also ended with a positive sales trend despite the persistently difficult market environment. Its gross sales totalled EUR 21.92 million (previous year: EUR 21.86 million). This represents a slight increase of 0.3%. Adjusted for changes in floor space, sales increased by 3.9%. According to the trade journal TextilWirtschaft, the textile retail business saw its sales drop by 6% in the same period. In the first quarter of 2006, the group posted unchanged net gross earnings of EUR 8.6 million (previous year: EUR 8.6 million). The net gross earnings ratio of 45.6% was almost unchanged compared with the previous year (45.7%). The cost ratio (expenses set off against the corresponding income) improved by 2.0 percentage points over the previous year (47.6%) to 45.6%. Thanks to the improved cost structure, LUDWIG BECK already generated a balanced operating result (EBIT) in the first quarter. Its operating earnings (EBIT) showed a disproportionate increase, totalling EUR 0.0 million (previous year: EUR -0.4 million). This represents an increase of EUR 0.4 million. At the end of the quarter, the number of employees (excluding trainees) totalled 521 (previous year: 528). Weighted to take account of full-time staff, the number of employees at group level fell to 371 (previous year: 403). This represents a decrease of 7.9%. With 58 trainees as of 31 March (previous year: 57), LUDWIG BECK continues to maintain its high standard of training. Outlook The German retailing association HDE is not alone in forecasting for the current financial year a nominal sales increase of between 0.5% and 1.0%. “The forecasts continue to point to growth,” said Dieter Münch, chief financial officer of LUDWIG BECK AG. “The very satisfactory sales and earnings figures for the first quarter constitute a firm foundation for the current financial year. We are convinced that our positive business trend will continue, and not just this year,” he continued. In the future LUDWIG BECK will continue to focus increasingly on growth at the flagship store and will there continue to pursue its successful trading-up strategy. The cornerstone of this concept is to improve the level of brands and ranges overall and to take the shop fittings forward to modern standards. At the same time the consistent cost management will be maintained that in the past has made a crucial contribution toward the company’s success. In the Nuremberg fashion house Rudolf Wöhrl AG, which since 19 April 2006 has held 29.91% of the share capital, LUDWIG BECK has a competent and long-term partner by its side. Cooperation between the two longstanding fashion houses offers both companies attractive prospects and ensures the LUDWIG BECK group’s long-term independence. The full report for the first quarter is available on our website www.ludwigbeck.de. The printed version will be available on 3 May 2006. Key figures in EUR (m) 01.01.–31.03.06 (01.01.–31.03.05): Gross sales 21.9 (21.9); Net gross earnings 8.6 (8.6); EBITDA 0.9 (0.6); EBIT 0.0 (-0.4); Investment 0.4 (0.8); Employees (number) 521 (528) Investor Relations contact: Buchanan Capital Group Metis-Corinna Tarta +49 8151 95966-25 m.tarta@buchanan-ag.com Ludwig Beck Accounts contact: Ludwig Beck am Rathauseck Martin Gehrke +49 89 23691-788 martin.gehrke@ludwigbeck.de (c)DGAP 27.04.2006 ————————————————————————— language: English emitter: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG Marienplatz 11 80327 München Deutschland phone: +49 (0)892 36 91-0 fax: +49 (0)892 36 91-6 00 email: info@ludwigbeck.de WWW: www.ludwigbeck.de ISIN: DE0005199905 WKN: 519990 indexes: stockmarkets: Amtlicher Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service —————————————————————————