Munich, July 26, 2016 – The Munich fashion group LUDWIG BECK (ISIN DE 0005199905) recorded a substantial growth in sales in the first half of 2016, attributable to the WORMLAND segment newly acquired in May 2015. The German fashion trade concluded the first six months of the year under report with a cumulative 1% decline in sales.
Development of sales
At group level, LUDWIG BECK generated gross sales in the amount of € 79.5m (previous year: € 56.8m). The new WORMLAND segment contributed € 35.0m to this result (previous year: € 11.2m). The LUDWIG BECK segment including the flagship store at Marienplatz in Munich with sales amounting to € 44.5m (previous year: € 45.6m) produced a slight decrease, basically due to erratic weather conditions prevailing over extended periods of time. The online store at www.ludwigbeck.de continued its positive performance trend also in the past half-year.
Earnings situation
The Group’s gross profit reached € 31.2m (previous year: € 23.3m). The gross profit margin was at 46.7% (previous year: 48.9%). This decline was not only due to the development of sales but also to the continuous sell-off of old WORMLAND stocks and the intensified sell-off of old goods in the Theo branch in Oberhausen, which was closed on June 30, 2016 as scheduled. In this context it also has to be mentioned that the launch of a new WORMLAND branch in Nuremberg is planned for the fall of 2016. As per reporting date, WORMLAND’s stocks have been cleared by and large so that the gross profit margin can be expected to rise in the second half of the year.
Personnel expenses went up to € 15.4m (previous year: € 10.6m). Other expenses were recorded in the amount of € 17.4m (previous year: € 11.1m).
At group level, earnings before interest and taxes (EBIT) amounted to € -1.6m (previous year: € 11.3m). The LUDWIG BECK segment could improve its result from € 1.1m to € 1.6m. The WORMLAND segment recorded an EBIT of € -3.2m.
Consolidated earnings before taxes (EBT) came to € -2.1m (previous year: € 10.8m).
Outlook
The development in the first half of the year has provided proof that the measures initiated by LUDWIG BECK to integrate WORMLAND are taking hold and that the new segment has made an important step towards consolidation.
Dieter Münch, member of the Executive Board of LUDWIG BECK AG, stated: In the medium term, we will lead WORMLAND back to its original strength and economic efficiency.
At the same time the management is keeping a watchful eye on potential changes of the political and macroeconomic framework conditions in Germany and in Europe. At any rate, an event like the recent killing spree in the Olympia shopping mall (OEZ) in Munich provides an example of some unforeseen occurrences that can significantly affect a forecast. Furthermore, it is currently impossible to predict whether the terrorist attacks committed in Europe will lead to distinctly slackened tourist traffic in the second half of 2016.
At present, the Executive Board expects sales of goods at group level to reach between € 180m and € 190m and earnings before interest and taxes (EBIT) to amount to € 8m to € 9m.
The comprehensive Half-year Report for the fiscal year 2016 is published online at http://kaufhaus.ludwigbeck.de/english/ under Investor Relations, in the Financial Publications section under the heading Quarterly Reports.
Key Figures of the Group
| in €m | 1/1/2016-6/30/2016 | 1/1/2015-6/30/2015 |
| Gross sales | 79.5 | 56.8 |
| Net sales | 66.8 | 47.7 |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 0.5 | 13.0 |
| Earnings before interest and taxes (EBIT) | -1.6 | 11.3 |
| Earnings before taxes (EBT) | -2.1 | 10.8 |
| Earnings after taxes | -2.4 | 10.6 |
| Equity (at end of period 6/30) | 74.0 | 74.9 |
| Equity ratio in % (at end of period 6/30) | 56.9 | 52.0 |
| Earnings per share (in €) | -0.64 | 2.88 |
| Investments | 2.0 | 0.8 |
| Employees *) | 882 | 912 |
| Apprentices (Number) | 49 | 53 |
*) without apprentices
Segment information
| in €m | LUDWIG BECK | WORMLAND |
| Sales (gross) | 44.5 | 35.0 |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 3.2 | -2.6 |
| Earnings before interest and taxes (EBIT) | 1.6 | -3.2 |
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.