Munich retailer Ludwig Beck suffered from “prolonged summer weather” in the third quarter of the current 2023 financial year, which dampened demand for autumn and winter clothing. Nevertheless, sales in the first nine months of the year were above the level of the same period last year. This emerges from an interim statement that the company published on Thursday.
According to this, gross sales in the months January to September amounted to 59.6 million euros, which meant an increase of almost six percent compared to the same period last year. Net sales grew accordingly from 47.4 to 50.1 million euros.
After an increase in sales of nine percent in the first half of the year, sales in the third quarter were, according to the retailer, only roughly at the level of the same period last year. “Although Ludwig Beck was also affected by customers’ reluctance to sell autumn/winter goods, this was largely offset by strong traditional costume business,” explained the company. In addition, sales in online business have increased.
Not least due to negative one-off charges as a result of a failed real estate deal, the group reported a loss before interest and taxes (EBIT) of 0.1 million euros for the first nine months, after a positive EBIT of 1.0 million euros was achieved in the previous year was. Adjusted for special effects, EBIT amounted to 1.1 million euros. The reported net loss increased from 0.1 to 1.1 million euros.
In view of the available figures, management hopes to be able to achieve its goals for the current financial year. “At this point in time, Ludwig Beck is still within the forecast earnings range of his expected earnings for 2023,” it said in a statement. “Since the fourth quarter is the fashion house’s strongest quarter of the year in terms of sales, it will also be crucial for the results for the traditional Munich company.”