Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG
Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG: LUDWIG BECK reports significant improvement in earnings after nine months
DGAP-News: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG / Key word(s): Quarterly / Interim Statement CONSOLIDATED QUARTERLY STATEMENT LUDWIG BECK reports significant improvement in earnings after nine months Munich, October 24, 2017 – The Munich Fashion Group LUDWIG BECK (ISIN DE 0005199905) concluded the first nine months of the fiscal year 2017 with sales up 0.2%, and was able to significantly improve its earnings at Group level. Above all, the favorable development in the third quarter, in line with the sector trend in the German fashion trade, contributed to this business performance. The month of September alone accounted for a 20% increase in sales of the German brick-and-mortar fashion trade (according to TW-Testclub). Even though the reference figures from the same period last year are relatively meager, there has never been a record month like this since this best-attended branch panel started its recordings in the year 2000. Despite a strong third quarter, the trade concluded the first nine months of 2017 with an accumulated loss of 1% according to TextilWirtschaft. Thus, LUDWIG BECK was able to distance itself from the negative branch trend. Economic framework conditions and retail trade development According to the observations of the German Institute for Economic Research (DIW), the economic growth engine has switched to a lower gear around the middle of the year after a fulminant start phase, and yet the institute, based on preliminary figures, calculated the increase of the gross domestic product in the third quarter of 2017 to amount to 0.5%. In the face of well utilized capacities, stable consumer prices and increasing incomes, the economic upswing is based on a sound foundation. Even a slight decline in consumer confidence after a total of five consecutive increases in September could not affect this result. However, a turning point in textile retail trade seems to be on the horizon: According to the information provided by the Federal E-Commerce and Distance Selling Trade Association, the online trade in the textile sector only grew 0.7% in the third quarter – a lot slower than in previous years. Online fashion retailers who had recently put up a strong competitive fight with the brick-and-mortar textile retailers, have thus fallen behind other industries as regards growth percentages. As the Association stated, retailers in the stationary trade sector have been more successful once again. Development of sales In the third quarter alone (July – September 2017) sales at Group level went up significantly in comparison to the previous year and reached EUR 41.4m (previous year: EUR 38.7m). Unlike in the previous year, when the month of September presented us with temperature of 20 and more, this year’s low temperatures and heavy rains clearly enhanced consumers’ propensity to shop for fall and winter fashions. Personnel expenses went down to EUR 22.1m (previous year: EUR 22.9m) as compared to the previous year, basically on account of structural adjustments at the managerial level. Other expenses amounted to EUR 25.6m (previous year: EUR 25.3m). Earnings before interest and taxes (EBIT) of EUR -1.1m showed a distinct improvement in comparison to the previous year with EUR -2.4m. The share of the LUDWIG BECK segment in EBIT went up by EUR 0.4m and came to EUR 3.2m exceeding last year’s figure (EUR 2.8m) as a result of maintained cost efficiency. The WORMLAND segment was also able to improve EBIT and recorded a loss of only EUR 4.3m (previous year: EUR -5.2m). The consolidated financial result of EUR -0.7m remained at last year’s level (EUR -0.7m). Accordingly, Group earnings before taxes (EBT) amounted to EUR -1.8m (previous year: Balance sheet structure As in the past, tangible fixed assets of EUR 100.2m in aggregate still formed the largest item of long-term assets (December 31, 2016: EUR 101.2m). They include the real estate at Marienplatz in Munich carried at more than EUR 70m. All told, long-term assets amounted to EUR 105.3m, thus falling slightly short of the figure of EUR 106.5m recorded for the reporting date December 31, 2016. Short-term assets went up from EUR 27.5m (December 31, 2016) to EUR 31.9m. Inventories went up for seasonal reasons and came to EUR 25.9m in aggregate as per reporting date September 30, 2017 (December 31, 2016: EUR 21.3m). Cash and cash equivalents amounted to EUR 1.4m (December 31, 2016: EUR 1.6m). Balance sheet structure Long-term liabilities went down from EUR 32.4m (December 31, 2016) to EUR 30.9m. This was basically due to scheduled repayments. Short-term liabilities increased from EUR 22.7m (December 31, 2016) to EUR 32.6m. The status of short-term liabilities was not only due to the financing of investments and inventories but also due to the financing of the negative result as well as the dividend payment. Total liabilities of the Group amounted to EUR 63.5m as per the reporting date September 30, 2017 (December 31, 2016: EUR 55.1m). The cash flow from current operating activities came to EUR -5.3m after the first nine months of the year 2017 (previous year: EUR -8.6m). The cash flow from investment activities amounted to EUR -1.9m (previous year: EUR -4.0m) in the reporting period. Investments mainly concerned the flagship store at Marienplatz in Munich. Cash flow from financing activities amounted to The LUDWIG BECK Group in 2017 Therefore, the Executive Board reaffirms its expectations for the business development in 2017, and expects sales of goods at Group level to reach between EUR 170m and EUR 180m and earnings before interest and taxes (EBIT) to range between EUR 4m and EUR 6m.
Since the end of 2012, the singular brand portfolio of the beauty department is also available for online shopping at www.ludwigbeck.de. Customers can expect a unique selection of almost 10.000 products of more than 100 luxury and niche cosmetics brands. About WORMLAND
24.10.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG |
Marienplatz 11 | |
80331 München | |
Germany | |
Phone: | +49 (0)89 2 36 91-0 |
Fax: | +49 (0)89 2 36 91-600 |
E-mail: | info@ludwigbeck.de |
Internet: | www.ludwigbeck.de |
ISIN: | DE0005199905 |
WKN: | 519990 |
Listed: | Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |
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Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG
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