Munich, April 26, 2016 – The Munich fashion group LUDWIG BECK (ISIN DE 0005199905) has closed the first quarter of 2016 at a satisfactory level overall. At group level, the company was able to register a distinct increase in sales in comparison to the previous year, which was due to the acquisition of the new WORMLAND segment in the second quarter of 2015. LUDWIG BECK succeeded in holding up like-for-like sales in spite of challenging conditions. The German fashion trade concluded the first quarter of the current fiscal year with an accumulated deficit of 2%.
Development of sales
At group level, LUDWIG BECK generated gross sales in the amount of € 37.3m (previous year: € 21.7m) in the first three months of the year. The new WORMLAND segment contributed a total of € 16.3m to this amount.
Earnings situation
Gross profit reached € 14.3m (previous year: € 8.5m). The gross profit margin came to 45.5% (previous year: 46.3%). The reasons for this slight decline lay in the sales development in the first three months and the resulting sell-off of fall/winter goods with significant price changes, as well as the continuous sell-off of old WORMLAND stock.
Personnel expenses increased to € 7.7m in comparison to the previous year (previous year: € 4.4m). Non-recurring effects of personnel restructuring measures in the amount of € 0.7m were of consequence in this regard. Other expenses amounted to € 9.2m (previous year: € 3.9m).
Earnings before interest and taxes (EBIT) amounted to € -2.4m (previous year: € 0.0m), earnings before taxes (EBT) to € -2.7m (previous year: € -0.2m). Earnings after taxes were at € -2.5m (previous year: € -0.1m).
Outlook
For the LUDWIG BECK Group, the year 2016 is all about the integration and consolidation of WORMLAND. Dieter Münch, member of the Executive Board of LUDWIG BECK AG: It is our goal to reinstate the former strength of WORMLAND in the market for exclusive men’s fashion. To this end, we will apply the very same measures that have led the LUDWIG BECK Group on a long-standing, stable growth course.
The Group still stays with its sales target for 2016, which is to generate trade sales in the amount of € 180m to € 190m and earnings before interest and taxes (EBIT) of € 8m to € 9m.
The comprehensive quarterly report for the first three months of the 2016 fiscal year is published online at http://kaufhaus.ludwigbeck.de/english/ under Investor Relations, in the Financial Publications section under the heading Interim Reports.
Key Figures of the Group
| in €m | 1/1/2016-3/31/2016 | 1/1/2015-3/31/2015 |
| Gross sales | 37.3 | 21.7 |
| Net sales | 31.4 | 18.3 |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | -1.3 | 0.8 |
| Earnings before interest and taxes (EBIT) | -2.4 | 0.0 |
| Earnings before taxes (EBT) | -2.7 | -0.2 |
| Earnings after taxes | -2.5 | -0.1 |
| Equity (at end of period 3/31) | 76.7 | 67.1 |
| Equity ratio in % (at end of period 3/31) | 56.2 | 59.4 |
| Earnings per share (in €) | -0.68 | -0.03 |
| Investments | 1.0 | 0.4 |
| Employees *) | 870 | 471 |
| Apprentices (Number) | 50 | 47 |
*) without apprentices
Segment information
| in €m | LUDWIG BECK | WORMLAND |
| Sales (gross) | 21.0 | 16.3 |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 0.8 | -2.1 |
| Earnings before interest and taxes (EBIT) | 0.0 | -2.4 |
About LUDWIG BECK
LUDWIG BECK AG is one of the leading companies in the German textile retail industry, achieving gross sales in the amount of € 104m in the year 2015 (as of December 31, 2015) with approx. 500 employees and a total area of 12,400 sqm.
LUDWIG BECK is located at the heart of Munich, directly at the Marienplatz. Over seven floors, the Munich-based fashion company offers international fashion, leather goods and accessories, as well as exclusive cosmetics. With more than 12,000 titles it also offers Europe’s largest stationary selection of classic, jazz and world music alongside audiobooks. Since the end of 2012 the unique brand portfolio of the company’s beauty department has also been available for online shopping at www.ludwigbeck.de. Here customers are awaited by a unique selection of almost 10,000 products from over 100 brands in luxury and niche cosmetics.
WORMLAND:
THEO WORMLAND GmbH & Co. KG, which is based in Hanover, achieved sales in the amount of € 80m (as of December 31, 2015) with 467 employees over an area of around 14,800 sqm. Here the corporation incorporates two different store concepts: WORMLAND and THEO. With 15 branches, THEO WORMLAND GmbH & Co. KG is now amongst the leading German men’s fashion retailers.