Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • Jul 28, 2005

News Details

Corporate | 28 July 2005 14:36

LUDWIG BECK AG: Like-for-like growth in sales – significant EBIT increase

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Munich, 28 July 2005 – The first six months of 2005 saw the LUDWIG BECK Group (ISIN DE0005199905) maintain the previous year’s level in terms of turnover, with gross sales up from EUR43.6 million to EUR43.7 million. This development is all the more pleasing in view of the fact that the number of sales locations has been reduced by five in comparison with the same period last year and given that the textile retail sector will be registering an average drop in sales of 2.0% for the first half-year 2005 (source: Textilwirtschaft, the German trade journal). The LUDWIG BECK Group’s sales rose by 1.0% in sales area adjusted terms during this period. Earnings generated by LUDWIG BECK during the first six months of 2005 climbed significantly and, as at 30 June 2005, the EBIT level is already EUR1 million up on the previous year’s figure and the ratio of gross earnings to sales revenue rose by 0.4 percentage points to 47.1% from a figure of 46.7% last year. The sustained effects of the cost-cutting measures made for a reduction of EUR1.2 million in operating expenses. The cost-income ratio (costs balanced against the corresponding income) improved as well, and was reduced by 1.9 percentage points to 40.3% from the previous year’s level of 42.2%. From the retail trade’s point of view the second half of 2005 is generally likely to see few positive stimuli. The forthcoming elections and the associated discussions on the impact of a VAT hike and on the orientation of a new government in Berlin are unlikely to trigger any dramatic degree of consumer enthusiasm. In contrast to the general trend in the retail sector, LUDWIG BECK is reacting to the situation with moderate optimism and confidently trusts in its own successful trading. The focus is on resolute pursuit of the Group’s overall strategy: the implementation of the trading-up process at the flagship Marienplatz store in Munich is already bearing the first fruit and the sales and profit potential generated by the branch concept is being continuously optimized, in the wake of which LUDWIG BECK AG will be closing down the ex-stock sales operation in Hechingen on 31 August 2005. Besides the opportunities for healthy sales figures in the autumn season’s opening and in the traditionally buoyant Christmas business, further sales growth is anticipated in the HAUTNAH cosmetics department. Still growing at a high level, this area of operations can now look forward to the exclusive introduction of the British cult brand JO MALONE which, from September onwards, will available for the first time in Germany and only at LUDWIG BECK. Another innovative activity at LUDWIG BECK in terms of uniqueness and exclusivity in the toughly contested cosmetics market will be the “HAUTNAH Wellness Week” in October, an emotionally presented and attention-grabbingly promoted event aimed at achieving further popularity, awareness and image enhancement as well as high footfall and sales levels. The repositioned leatherware and accessories department is expected to continue generating positive stimuli, having already registered sales growth of 65% in the first six months. A top priority remains ensuring that the high expectations on the part of the customers in terms of LUDWIG BECK’s traditional strengths continue to be optimally met. The overriding objective remains the company’s return to the profit zone, for which a solid basis has been created during the past half-year. LUDWIG BECK is going for a continuingly positive sales trend in the second half of 2005 against a background of stringent adherence to the cost-cutting programme – and thus for a significant upward profit trend. The detailed Interim Report will be appearing in printed form on 3 August, and is being published in parallel on the Internet at www.ludwigbeck.de. 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 2005 2004 as of 30 June 2005 in EUR million Gross turnover 43.7 43.6 Gross turnover less VAT and material cost 17.7 17.5 EBITDA 1.9 0.9 EBIT 0.1 -0.9 Deficit for the period -1.0 -1.6 Workforce (as of 30 June) 522 570 End of announcement (c)DGAP 28.07.2005 —————————————————————————— WKN: 519990; ISIN: DE0005199905; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg und Stuttgart 281436 Jul 05