Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • Aug 6, 2002

News Details

Corporate | 6 August 2002 15:01

Ludwig Beck am Rathauseck english

Interim report 2002 Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Interim report 2002: Weak economic activity and consumer buying restraint still in evidence. Operating result over the period nevertheless only slightly below last year’s level. New wellness store and ex-stock sales make for turnover growth Munich, 6 August 2000. The Ludwig Beck Group (WKN 519 990) has seen turnover drop against the background of an extremely weak economic environment. Gross turnover during the first six months of 2002 came to EUR 41.4 million (as against last year’s figure of EUR 43.3 million), and was thus 4.4 per cent below that of the same period in 2001. In addition to the heavily clouded economic environment, the flagship store on the Marienplatz in Munich also had to take into account the temporary closure for about three months of a total five per cent of the operation’s sales areas that was made necessary by renovation and expansion of the linen and bodywear store. Nevertheless, the sales trend at LUDWIG BECK is in line with that of the sector as a whole. Sales on the German retail front have slumped to an unprecedented degree and, according to the German “TextilWirtschaft” trade journal, textile retailers have seen sales drop by no less than 7 per cent. The weak situation in terms of consumption affected all departments at LUDWIG BECK to virtually the same extent, though pleasing exceptions to the rule were the linen and bodywear department as well as the Young Men’s Fashion department on the fourth floor. Sustained improvement was also achieved by the Beck branch operations, one prominent example being the branch at the PEP Perlacher Shopping Centre with sales growth of 5.7 per cent. Consolidated for the first time, Ludwig Beck Vertriebs GmbH which commenced its business activities in late February now includes 5 stores already, and delivered a contribution of EUR 1.3 million to the Group’s turnover. ludwigbeck-online GmbH achieved a figure of EUR 0.186 million as against EUR 0.176 over the same period last year. Declining sales have meant that LUDWIG BECK has seen its operating result deteriorate. Results from ordinary operations amounted to EUR -1.4 (-0.5) million, inclusive of the results achieved by the operative subsidiaries Ludwig Beck Vertriebs GmbH with EUR -0.3 million and ludwigbeck-online GmbH with EUR – 0.1 million. The deficit for the period under review only rose slightly to EUR – 1.5 (-1.4) million. Owing to the nature of the trade, the results achieved by retail companies during the first quarter of the year are negative since the fixed costs are distributed evenly whilst the larger portion of sales is accounted for during the second half-year. LUDWIG BECK recognized the signs of the looming economic slow-down and initiated cost-cutting measures at an early stage, principally involving the area of personnel. The number of employees was cut from 597 to 554. Weighted by full- time staff, the workforce contracted to 441 from last year’s 451, and this figure will drop further to around the 400 mark by the end of the year. In addition, the Management Board is dispensing with its variable remuneration, meaning around 20 per cent of the remuneration package. In a further measure, all cost types are being reviewed and adjusted, and this will lead to a permanent lowering of operational outlay by EUR 1 million. After 2001, the German textile retail sector is facing a further lean year, and there are currently no signs of an end to the consumption doldrums in the foreseeable future. In view of the present situation the Management Board has also taken appropriate strategic steps, and the following concrete measures are being taken on the basis of intensified concentration on core business, over- the-counter sales and focusing on the company’s strengths: – The sales area at the flagship Marienplatz store in Munich is to be expanded. The cosmetics department has already proven successful, and in August will be reopened on a larger area with a directly adjacent spa zone. In doing so, LUDWIG BECK is making use of the fact that consumer spending on wellness, body care and health has continued to rise and remained largely untouched by economic influences. At the same time, new collections will be added to the lingerie range, and the Young Fashion department will also get an additional sales area. The store will also house a new Sportive Designer department featuring an attractive range of “after-work” clothing and accessories produced by leading international designers. – In October Ludwig Beck Vertriebs GmbH will be opening a further mono-label store Esprit on a total sales area of around 1,000 m2 in Munich’s Olympia Shopping Centre (OEZ). – An additional sales channel has been opened up in the form of a Fashion Warehouse outlet located in a Munich suburb, and sales there have exceeded all expectations. This concept provides a means of marketing surplus stocks and attractive special offers and items in the future. – Spring 2003 will see the successful “Hautnah” concept being duplicated on a sales area of 160 m2 in “Fünf Höhen”, a new, high-quality shopping environment in Munich’s city centre. – As a result of significantly below-budget development to date, LUDWIG BECK’s subsidiary ludwigbeck-online GmbH will be closed down with effect from 30 September 2002. In spite of the continuingly weak economic trend, LUDWIG BECK expects to achieve sales at last year’s level in the wake of the targeted expansionary measures that have and are being implemented. Above all the newly opening departments will already be generating considerable growth stimulus by the end the year. However, the definitive way in which business develops will largely depend on the further economic trend in the second half-year, with particular attention being directed towards the traditionally high-turnover and high-profit fourth quarter. Contact: Lothar Fiss, Tel. 0049 89 23691663 Key figures of LUDWIG BECK as at 30 June 2002 in EUR million 2002 2001 Gross turnover 41,4 43,3 Net turnover 35,7 37,4 EBIT -1,3 -0,0 Result from ordinary operations -1,4 -0,5 Deficit for the period -1,5 -1,4 Net earnings p.share (DVFA)EUR -0,34 -0,24 Personnel as at 30.06. 554 597 end of message, (c)DGAP 06.08.2002 ——————————————————————————– WKN: 519990; ISIN: DE0005199905; Index: SDax Listed: Amtlicher Markt in Frankfurt (SMAX) und München; Freiverkehr in Berlin, Düsseldorf, Hamburg und Stuttgart 061501 Aug 02