Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • May 6, 2004

News Details

Corporate | 6 May 2004 12:13

LUDWIG BECK reverses the trend in sales to date – Quarterly Report 1.2004

Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– LUDWIG BECK reverses the trend in sales to date – Quarterly Report 1.2004 Quarterly Report 1, 2004 LUDWIG BECK reverses the trend in sales to date: sales up on previous year and branch figures – Enhanced EBIT – Further profit improvement aimed for by way of stringent cost management. Munich, 6 May 2004. The first quarter of 2004 has seen LUDWIG BECK (DE0005199905) bucking the general market trend. Whilst sales in the textile trade slumped by 4% according to Germanys TextilWirtschaft trade journal, LUDWIG BECK increased its own sales figures by 7.1%. Consolidated Group sales in the first quarter made for a gross total of EUR 21.7 million (previous year: EUR 20.2 million), including Ludwig Beck Vertriebs GmbH with sales of EUR 2.1 million as against the previous year’s figure of EUR 1.4 million. Ludwig Beck Vertriebs GmbH kept to its schedule for expanding the companys network of branches and on 10 March opened two new shops under brand names Gerry Weber and Tommy Hilfiger in the new “Riem-Arcaden” shopping centre in Munich. Ludwig Beck AG too opened a branch with a sales area of 1000 m2 at the same location. The result of these activities is that a wide catchment area has now been opened up in the eastern part of Munich. The immediate vicinity includes the city’s exhibition grounds, next to which a new residential district is in the process of construction. Major events scheduled here include the Bundesgartenschau (garden show) in 2005, and Riem will be the international press centre for the World Football Championship being held in Germany in 2006. The result from ordinary activities (EBIT) has improved to EUR -0.6 million as against the previous year’s level of EUR -0.9 million. Gross turnover less VAT and material costs rose to 44.6% from last years 43.8% and the cost-income ratio (costs balanced against the corresponding income) improved from the previous year’s 48.7% to 48%. For market-induced reasons the results achieved by retail businesses are negative in the first quarter of each year. The number of employees (not including trainees) rose from 485 to 569 as at the reporting date; weighting by full-time staff makes for a figure of 436 over the previous years 397. This personnel increase is attributable to the branches newly opened during the past 12 months. Given what is still only a very hesitant pace of economic recovery there is not likely to be any improvement in consumer confidence until the second half of this year. In spite of the continuingly difficult situation in the trade LUDWIG BECK is cautiously optimistic, trusting in its own strengths such as the company’s attractive product range concept, superior service, and target group- oriented methods of presentation and approach. Substantial improvement of the EBIT remains a high-priority objective, and activities towards this end will include the launching of a package of measures in the order of EUR 1 million. The wide range of cost-cutting measures already initiated in 2003, especially in the area of personnel, will continue to have a sustainable impact in 2004 as well. The gross yield margin will be further improved by way of, for example, the enhanced control possibilities furnished by a new merchandise management system scheduled to go into operation from July onwards. Ludwig Beck will continue to buck the current market trend on its traditional basis of quality and competence in terms of product range and service. The core requirements of our target group for quality and an enjoyable shopping experience will gain the upper hand over the still-to-be-anticipated discount wars on the part of some competitors. The detailed Quarterly Report will be appearing in printed form on 13 May 2004, and is being published in parallel on the Internet at http://www.ludwigbeck.de . Contact: Jens Schott, Investor Relations Tel. +49(0) 89 23691-798, Fax +49(0) 89 23691-600 Key figures of Ludwig Beck AG as at 31.03. in EUR million 2004 2003 Gross turnover 21,7 20,2 Gr. turnover less VAT/Material 8,3 7,6 EBIT -0,6 -0,9 Deficit for the period -0,9 -1,0 Workforce as at 31.03. 569 485 end of message, (c)DGAP 06.05.2004 ——————————————————————————– WKN: 519990; ISIN: DE0005199905; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg und Stuttgart 061213 Mai 04