Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • May 8, 2003

News Details

Corporate | 8 May 2003 14:47

Ludwig Beck am Rathauseck english

Quarterly Report 1.2003 Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Quarterly Report I/2003 Continued weak state of the economy leads to declining sales and operating results. Additional package of measures initiated towards improving the profit situation. Munich, 8 May 2003. LUDWIG BECK (DE0005199905) saw turnover drop during the 1st quarter of 2003 against the background of a continuingly negative economic environment. Gross consolidated turnover amounted to EUR 20.2 million as against the previous year’s figure of EUR 21.2 million. According to the German trade journal “TextilWirtschaft”, sales in Germany’s textile retail sector as a whole slumped by an average 7 % over the first three months of the year, though it should be noted that this year’s Easter season lies in the 2nd quarter. Key reasons behind this situation include the poor situation in the labour market, higher social security contributions and indirect taxation, and the discussions concerning the government’s proposed reform of the social and tax system, all of which are serving to sustain the high degree of uncertainty among consumers. Having commenced operative activity in February 2002, Ludwig Beck Vertriebs GmbH contributed a turnover of EUR 1.4 million as against last year’s 0.3 million. The decline in turnover led to a slight downward movement from last year’s figure of EUR -0.6 to EUR -0.9 in the IAS results from ordinary activities (EBIT). The cost reduction measures already introduced and implemented last year took considerable strain off the financial outlay side, but were nevertheless unable to fully compensate the decline in earnings caused by falling sales and price cuts. Owing to the nature of the trade, operating results in the retail sector are negative during the first three quarters of the year since fixed costs are spread over the entire year, whilst the higher sales figures are achieved in the closing quarters. In view of the economy’s continuingly difficult situation there is hardly likely to be any general improvement in consumer confidence in Germany before 2004. Ludwig Beck is nevertheless confident of largely maintaining its sales levels, and above all of significantly improving profit performance (EBIT). To this end a further package of measures has been approved which will already lead to additional earnings of EUR 2 million in the course of the current year and bring permanent relief to the cost structure. Adjustments have been carried out at personnel level, among other things by way of introducing the 40-hour week without full wage compensation, and salary concessions on the part of management staff. Full use will be made of the extended Saturday business hours that are likely to become possible from the beginning of June, and Ludwig Beck’s flagship store with its excellent city-centre location on Munich’s Marienplatz will benefit in particular since, with its high hourly revenues, Saturday is already the most profitable sales day of the week. Ludwig Beck does not intend taking part in the current trend in the German retail trade towards price campaigns and discount battles, and instead will continue to concentrate on providing the very highest standards in terms of quality, products and service. In short, the focus is and will remain on the customers’ core need and requirement, namely a pleasant shopping experience. The detailed Quarterly Report will be published on the Internet at www.ludwigbeck.de, parallel to the printed version which will be available as from 14 May 2003. Contact: Lothar Fiss, Investor Relations Tel. +49(0)89 23691-663, Fax +49(0)89 23691-600 Key figures as at 31.03. in EUR million 2003 2002 Gross turnover 20,2 21,2 Net turnover 17,4 18,3 EBIT -0,9 -0,6 Deficit for the period IAS -1,0 -0,6 Net earnings per share in EUR -0,34 -0,28 (IAS/DVFA) Personnel as at 31.03. 485 572 end of message, (c)DGAP 08.05.2003 ——————————————————————————– WKN: 519990; ISIN: DE0005199905; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg und Stuttgart 081447 Mai 03