Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG

Earnings Release • Apr 29, 2005

News Details

Corporate | 29 April 2005 11:46

Ludwig Beck am Rathauseck: Sales and earning up in the first quarter

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Munich, 29 April 2005: The LUDWIG BECK Group closed the 1st quarter of 2005 with sales up in year-on-year comparison – in spite of the fact that there were three sales days less than in the same period last year. Gross turnover rose from EUR21.7 million to EUR21.9 million, equating to an increase of 0.9%. Sales revenue rose by 1.5% after adjustment by floor area. In the first three months of 2005, gross turnover less VAT and material costs rose from last year”s figure of EUR 8.3 million to EUR 8.6 million, with the ratio of gross earnings to sales revenue rising by 1.1 percentage points to 45.7% from a figure of 44.6% last year. At 47.6%, the cost-income ratio (costs balanced against the corresponding income) improved as well, dropping by 0.4% from the previous year”s level of 48.0% as result of the cost-cutting measures initiated in 2004 and continued into 2005. Earnings before interest, taxes, depreciation and amortization (EBITDA) doubled from last year”s EUR 0.3 million to EUR 0.6 million, while earnings before interest and taxes (EBIT) improved by EUR 0.2 million to EUR -0.4 million from the 2004 figure of EUR -0.6 million. The personnel headcount (not counting trainees) as at the end of the quarter totalled 528 as against 569 last year. The continuingly high crude oil prices and record rate of unemployment make any significant upswing of the German economy highly unlikely. This is also corroborated by the spring reports recently published by the leading German economic institutes, in which the growth forecasts for 2005 were adjusted sharply downwards. Against this background the German textile trade will find itself facing a tough challenge in the months to come as well. LUDWIG BECK”s is reacting to the general situation with restrained optimism, and the Group will continue to trust in its own successful trading. The unique orientation concept under the motto “Emporium of the senses” at the Marienplatz flagship store in Munich has put LUDWIG BECK in a sound position. The traditional strengths such as product range and brand diversity, high product quality, competent and friendly advice and superior service are ensuring that the high expectations on the part of the customers are being optimally met. As part of the optimization process in terms of its portfolio of brands, LUDWIG BECK Vertriebs GmbH is handing over its three Tommy Hilfiger locations in Riem, Regensburg and Kempten to TOMMY HILFIGER Deutschland GmbH with effect as of 1 May 2005. The priority objective for LUDWIG BECK remains the return to the profit zone, to which end it is focusing its attentions on enhancing the ratio of gross earnings to sales revenue and cutting the cost-income ratio. The brand and location portfolios are subject to continuous review and optimization. The detailed Quarterly Report will be appearing in printed form on 6 May 2005, and is being published in parallel on the Internet at http://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 at 31 March 2005 Gross turnover 21,9 21,7 Gross turnover less VAT and material cost 8,6 8,3 EBITDA 0,6 0,3 EBIT -0,4 -0,6 Deficit for the period -0,8 -0,9 Workforce (as at 31 March) 528 569 End of announcement (c)DGAP 29.04.2005 —————————————————————————— WKN: 519990; ISIN: DE0005199905; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg und Stuttgart 291146 Apr 05