LUDWIG BECK closes first half-year at par

EQS-News: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG / Key word(s): Half Year Report/Half Year Results LUDWIG BECK closes first half-year at par 18.07.2024 / 08:30 CET/CEST The issuer is solely responsible for the content of this announcement. LUDWIG BECK closes first half-year at par

 

Munich, July 18, 2024 – The German textile retail sector closed the first half of 2024 with a gross sales par unchanged from the previous year. The first quarter was very positive: plenty of sunshine and spring-like temperatures in March increased consumers' shopping propensity, which resulted in a 4 per cent increase in sales for stationary fashion retailers compared to the previous year. However, a different picture emerged in the second quarter. Due to the cool, unstable, and rainy weather, consumers' buying mood and willingness to spend fell significantly. Customers were particularly reluctant to buy seasonal goods such as T-shirts, shorts, and summer dresses, and the expected demand for summer clothing largely failed to materialize.

Sales development

In the first half of the 2024 fiscal year, LUDWIG BECK generated gross sales of € 37.2m (previous year: € 37.1m). This half-year period was marked by challenges for LUDWIG BECK. Heavy weather with hail, persistent rain, and flooding in the region around Munich lead to a significant decline in sales in May and June. Additionally, the UEFA European Championship, which attracted many fans to Munich's city centre but created more of a party than a shopping atmosphere, led to revenue losses. In addition, the outsourcing of logistics to a new service provider in Schwaig, which has now been successfully completed, had a slightly negative impact on sales in some product lines in the second quarter.

In the first half of the 2024 fiscal year, sales in the "textile" segment increased from € 27.1m to € 28.3m. Sales in the "non textile" segment totalled € 8.9m, compared to € 9.9m in the previous year, partly due to the closure of a non-domestic online sales channel in the beauty segment.

Earnings situation

Gross profit fell slightly in the reporting year from € 15.3m in the previous year to € 15.1m.

Other operating income totalled € 1.9m (previous year: € 1.6m). In line with the sales situation, personnel expenses totalled € 8.1m, similar to the previous year's figure of € 8.2m. At € 3.3m, depreciation remained at the previous year's level. Other operating expenses amounted to € 6.4m (previous year: € 5.9m). In addition to general price increases, one-off additional costs were incurred due to the outsourcing of the logistics activities.