Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • Oct 28, 2005

News Details

Corporate | 28 October 2005 13:23

Ludwig Beck am Rathauseck: Strong year-on-year growth in sales

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Munich, October 28, 2005. The LUDWIG BECK Group (ISIN DE 0005199905) has continued its encouraging development in the third quarter of its current fiscal year: in the first nine months of 2005, the Group generated sales revenues of EUR 68.5 (67.9) million. This represents absolute growth in sales of 0.9%. On a like-for-like basis, sales grew by 2.6% compared with the same period last year. This positive trend in sales also impacted gross profit, which was up 1.3% over the prior-year result to stand at EUR 27.2 (26.9) million. Gross margin improved by 0.2 percentage points, from 45.9% to 46.1%, during the first nine months. At the same time, EBIT also grew strongly by EUR 1.7 million to stand at EUR 1.1 (-0.7) million. LUDWIG BECK thus once again clearly outperformed the textile sector as a whole, which suffered an average decline in sales of 2.0%. Earnings as of September 30 include non-recurring costs of EUR 0.3 million, which result from the closure of less profitable stores as part of the Group’s streamlining program. In detail, these include the fashion warehouse outlet in Hechingen already closed and the stores in Kuchen and Memmingen to be closed by year-end. The Group’s cost ratio (expenses against the corresponding incomes in proportion to net sales) was reduced by 2.7 percentage points, from 47.0% last year to 44.3%. Adjusted for special items included in this figure from store closures, the improvement was as much as 3.3 percentage points to 43.7%. On the basis of its encouraging development in the first nine months, LUDWIG BECK expects to post a clearly positive net income for fiscal 2005. The traditionally strong sales and earnings of the last three business months will play a major role in achieving this result. During the advent period, LUDWIG BECK’s famous Christmas House at the Marienplatz will once again draw numerous customers and provide strong store traffic and takings. Further positive effects for sales and earnings are expected from the revised layout of our Leather Goods and Accessories department as well as the Ladies Trousers and Ladies Fashion Combinations departments. Our decision to revise the layout concept of various store departments is proving highly successful and will be continued in the coming years. Our primary objective for the current year remains a significant improvement in earnings and thus a return to profitability. The targets we have set for year-end 2005 will be supported by the strict observance of our current cost- cutting program and the successful development of sales. With its traditionally high standards with regard to product quality, customer service and targeted marketing, the LUDWIG BECK Group is well prepared for the last quarter of its fiscal year. The detailed 9-Month Report is available on our website at http://www.ludwigbeck.de . The printed version will be available on November 04, 2005. Contact: Jens Schott (Investor Relations) Tel. +49 89 23691-798, Fax +49 89 23691-600 Barbara Gruber (Press Relations) Tel. +49 89 23691-669, Fax +49 89 23691-606 Key figures of the Ludwig Beck Group as of 30.09. 2005 2004 in EUR million Gross sales 68,5 67,9 Gross profit 27,2 26,9 EBITDA 4,0 2,1 EBIT 1,1 -0,7 Employees (No.) 532 581 End of announcement (c)DGAP 28.10.2005 —————————————————————————— WKN: 519990; ISIN: DE0005199905; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg und Stuttgart 281323 Okt 05