LUDW.BECK A.RATHAUSECK
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ISIN: DE0005199905

DGAP-News: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG: LUDWIG BECK's consolidated result at last year's level in the first quarter of 2017 thanks to efficient cost management

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DGAP-News: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG / Key word(s): Quarterly / Interim Statement/Quarter Results
Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG: LUDWIG BECK's consolidated result at last year's level in the first quarter of 2017 thanks to efficient cost management

25.04.2017 / 08:00
The issuer is solely responsible for the content of this announcement.


CONSOLIDATED QUARTERLY STATEMENT 
for the 1st Quarter of the Fiscal Year 2017
for the Period from January 1 - March 31, 2017


LUDWIG BECK's consolidated result at last year's level in the first quarter of 2017 thanks to efficient cost management

Munich, April 25, 2017 - The Munich Fashion Group LUDWIG BECK (ISIN DE 0005199905) concluded the first quarter of 2017 with a 1.9% sales decline and a result at last year's level. The fashion trade in general completed the first quarter with an accumulated loss in sales of 2.3% according to TextilWirtschaft. In challenging times for the entire German textile retail the Group deems the previous development as generally satisfactory. LUDWIG BECK has also been able to demonstrate again the Group's strength regarding cost efficiency.

Economic framework conditions and retail trade development

According to the preliminary data compiled by the German Institute for Economic Research (DIW) the gross national product in Germany went up 0.6% in the first quarter of 2017, thus exceeding the result of the final quarter of 2016. According to the economic researchers, this above average plus, (DIW) is attributable to a noticeable expansion of production in the industry sector, which has led to an upward trend comparable to the one that can be observed in the field of services. However, the recently accelerated inflation has dampened the purchasing power and has negatively affected retail sales. Despite the deterioration in consumer climate which nevertheless could be maintained at a fairly high level according to the Association for Consumption Research (GfK), consumers kept to their buying mood. The brick-and-mortar fashion trade could not benefit from this trend, as sales dropped 7% in January and 9% in February but finally rose 9% considerably in March (source: TW-Testclub). Two additional selling days in comparison to the same period in the previous year, and, above all, mild spring weather helped to create the anticipated trend reversal. Many fashion retailers put the blame for the flubbed beginning of the year on capricious weather conditions, as well as on ongoing reductions, which had a dampening effect on the consumers' buying mood.


CONSOLIDATED EARNINGS SITUATION

Development of sales
LUDWIG BECK generated gross sales in the amount of EUR 36.6m in the first quarter of 2017 (previous year: EUR 37.3m). The LUDWIG BECK segment with its flagship store at Marienplatz in Munich (including its annex HAUTNAH at FUENF HOEFE as well as the online trade at www.ludwigbeck.de) made a significant contribution of EUR 20.8m (previous year: EUR 21.0m). The WORMLAND segment's contribution to overall Group sales was EUR 15.8m (previous year: EUR 16.3m).

Earnings situation
Gross profit amounted to EUR 13.7m (previous year: EUR 14.3m). Accordingly, the gross profit margin was 44.6% (previous year: 45.5%). Thanks to cold weather, lower margin winter wear could be sold disproportionately well as compared to the previous year.

Personnel expenses went down from EUR 7.7m in the previous year to EUR 7.2m. Other expenses also dropped from EUR 9.2m in the previous year to EUR 8.7m.

Earnings before interest and taxes (EBIT) of EUR -2.4m remained at last year's level of EUR -2.4m, whereas the LUDWIG BECK segment contributed a positive share of EUR 0.1m (previous year: EUR 0.0m) while the WORMLAND segment had to record a loss of EUR 2.6m (previous year: EUR -2.4m). The consolidated financial result amounted to EUR -0.2m (previous year: EUR -0.3m). Earnings before taxes (EBT) came to EUR -2.7m like in the same quarter of the previous year. Earnings after taxes were at EUR -2.6m (previous year: EUR -2.5m).


ASSET SITUATION

Balance sheet structure
As per March 31, 2017, the balance sheet total of the LUDWIG BECK Group was, due to seasonal reasons, at EUR 136.3m, thus slightly exceeding the total as per balance sheet date December 31, 2016 in the amount of EUR 134.0m.

Tangible fixed assets with EUR 100.5m in aggregate still form 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 in all, long-term assets amounted to EUR 105.8m and recorded a slight decline in comparison to EUR 106.5m as per balance sheet date December 31, 2016.

Short-term assets rose from EUR 27.5m (December 31, 2016) to EUR 30.5m. Inventories went up for seasonal reasons and came to EUR 24.2m in aggregate as per reporting date March 31, 2017 (December 31, 2016: EUR 21.3m). Cash and cash equivalents remained unchanged at
EUR 1.6m (December 31, 2016: EUR 1.6m).


FINANCIAL SITUATION

Balance sheet structure
As per reporting date March 31, 2017, the LUDWIG BECK Group was equipped with equity in the amount of EUR 76.2m (December 31, 2016: EUR 79.0m). This corresponds to an equity ratio of 55.9% (December 31, 2016: 58.9%). The consolidated net income of EUR -2.7m had an equity reducing effect.

Long-term liabilities fell from EUR 32.4m (December 31, 2016) to EUR 31.5m. Short-term liabilities increased from EUR 22.7m (December 31, 2016) to EUR 28.7m. The status of liabilities is not only due to the financing of investments and inventories but also to the financing of the negative result. Consequently, total liabilities of the Group amounted to EUR 60.1m as per reporting date March 31, 2017 (December 31, 2016: EUR 55.1m).

Cash flow

The cash flow from current operating activities came to EUR -6.6m after the first three months of the year 2017 (previous year: EUR -6.5m). The cash flow from investing activities amounted to
EUR -0.4m (previous year: EUR -1.0m). The cash flow from financing activities reached EUR 7.1m (previous year: EUR 8.4m).


EMPLOYEES

In the first three months of the fiscal year 2017 the number of employees was 842 (without apprentices) in accordance with Section 267 par. 5 Commercial Code (HGB) (previous year: 870). The weighted number of full-time employees at Group level went down slightly to 550 (previous year: 579). The LUDWIG BECK Group employed 38 apprentices as per reporting date March 31 (previous year: 50).


FORECAST REPORT

Economic framework conditions and retail trade development
The spring report compiled by German economic research institutes for the federal government indicate a continued, moderate upward trend for the German economy which could further solidify in 2017 in spite of ongoing global economic crises. However, in comparison to former growth spells, this time, economic dynamics are expected to unfold in a more restrained way over time. This is attributable to the consumption factor having meanwhile turned into a prime mover susceptible to fluctuations. The opinion anticipates the gross national product to grow by 1.5% in 2017. According to the current consumer climate study by the Association for Consumption Research (GfK) private consumption will continue to be an important support factor for the German economy. In March, the GfK confirmed its former forecast and now predicts private consumption to increase by 1.5% in 2017. However, only one third of consumer spending is expected to end up in retail trade. In regards to textile retail trade, GfK coined the term saturation tendencies.

The LUDWIG BECK Group in 2017
The LUDWIG BECK management shares the cautiously optimistic forecasts of the leading economic researchers. In view of the enormous challenges the German textile retail trade has to put up with, the Executive Board places highest priority on the sustained, sound development of the Group based on an effective mobilization of the Group's internal potentials. Among other, such potentials can be tapped in regard to the unique approach to customers, unparalleled in Germany, a characterizing feature not only of the LUDWIG BECK flagship store in Munich but also of the WORMLAND branches. Member of the Executive Board Dieter Münch: Our strengths lie in our advising approach, our services and our presentation vis-à-vis customers, and we intend to push for the further development of these strengths.

The Executive Board reaffirmed its expectations for the business development in 2017 and expects sales of goods at Group level to reach between EUR 170 and EUR 180m and earnings before interest and taxes (EBIT) to range between EUR 4m and EUR 6m.


GENERAL PRESENTATION OF FIGURES IN THE INTERIM REPORT

All sums and figures contained in the text and the tables were exactly computed and then rounded to EUR m. The percentages given in the text and in the tables were determined on the basis of the exact (not rounded) values.


KEY FIGURES OF THE GROUP

in EURm 1/1/2017 - 3/31/2017 1/1/2016 - 3/31/2016 1/1/2016 - 12/31/2016
RESULT      
Gross sales 36.6 37.3 177.1
VAT 5.8 6.0 28.3
Net sales 30.8 31.4 148.9
Gross profit 13.7 14.3 71.3
Earnings before interest, taxes, depreciation and amortization (EBITDA) -1.3 -1.3 10.3
Earnings before interest and taxes (EBIT) -2.4 -2.4 6.3
Earnings before taxes (EBT) -2.7 -2.7 5.2
Earnings after taxes -2.6 -2.5 2.9
       
CASH FLOW      
Cash flow from operating activities -6.6 -6.5 6.0
Cash flow from investing activities -0.4 -1.0 -5.4
Cash flow from financing activities 7.1 8.4 -1.1
       
EMPLOYEES      
Employees (average without apprentices) 842 870 892
Apprentices (average) 38 50 52
Personnel expenses 7.2 7.7 30.4
       
SHARE      
Number of shares in millions 3.70 3.70 3.70
Earnings per share undiluted and diluted (in EUR) -0.71 -0.68 0.78
  3/31/17 3/31/16 12/31/16
BALANCE SHEET      
Long-term assets 105.8 105.2 106.5
Short-term assets 30.5 31.5 27.5
Equity 76.2 76.7 79.0
Long-term liabilities 31.5 33.3 32.4
Short-term liabilities 28.7 26.6 22.7
Balance sheet total 136.3 136.6 134.0
Investments -0.4 -1.0 -5.4
Equity ratio in % 55.9 56.2 58.9


SEGMENT REPORTING

in EURm LUDWIG BECK WORMLAND GROUP
Gross sales 20.8 15.8 36.6
Previous year 21.0 16.3 37.3
Earnings before interest, taxes, depreciation and amortization (EBITDA) 0.9 -2.2 -1.3
Previous year 0.8 -2.1 -1.3
Earnings before interest and taxes (EBIT) 0.1 -2.6 -2.4
Previous year 0.0 -2.4 -2.4
Earnings before taxes (EBT) -0.1 -2.6 -2.7
Previous year -0.2 -2.5 -2.7


About LUDWIG BECK
LUDWIG BECK is one of the top fashion retail companies in Germany. In 2016 with 467 employees it generated gross sales of EUR 101.1m (as per December 31, 2016) on an area of about 12,400 sqm as well as through its online shop.

LUDWIG BECK is located in the heart of Munich, directly at Marienplatz. On seven floors the Munich fashion company showcases international fashion, leather goods and accessories, exclusive cosmetics and with over 120,000 titles Europe's largest onsite collection of classical, jazz and world music and audiobooks.

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
THEO WORMLAND GmbH & Co. KG, based in Hanover, generated sales in the amount of
EUR 76.0m (as per December 31, 2016) with 425 employees on a total area of about 16,200 sqm in 2016. The Group is based on two differing store concepts: WORMLAND and THEO. Today, THEO WORMLAND GmbH & Co. KG ranges among Germany's top men's fashion retailers with a total of 15 branches.


Investor Relations contact:
esVedra consulting GmbH
Metis Tarta
t: +49 89 206021 - 210
f: +49 89 206021 - 610
[email protected]

Group accounting contact:
LUDWIG BECK AG
Jens Schott
t: +49 89 23691 - 798
f: +49 89 23691 - 600
[email protected]



25.04.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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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: [email protected]
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

566941  25.04.2017 

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