Ludwig Beck benefits from the Oktoberfest

Munich-based fashion retailer Ludwig Beck continued to recover in the third quarter of fiscal 2022. According to an interim report published on Thursday, gross sales in the months of July to September reached EUR 22.4 million, exceeding the level of the same quarter of the previous year by around 13 percent. After a “restrained start” to the current year, the group recently noticed a “normalization of the sales and earnings situation”, the company explained.

The traditional costume department that opened in March 2022 made a “gratifying contribution” to the “positive trend”, explained the retailer. “After a two-year Corona break, the Oktoberfest took place again for the first time this year. This fact inspired many Munich residents and tourists to equip themselves with new traditional costumes and accessories. Sales in the traditional costumes department were well above the ‘pre-pandemic level’ of 2019.”

In the first nine months of the year, the group generated gross sales of EUR 56.0 million, which corresponds to an increase of 41 percent compared to the same period of the previous year. Net sales also grew by 41 percent to EUR 47.4 million.

Thanks to the significant improvement in sales and lower price reductions, the company has also been able to make strong progress in terms of earnings over the course of the year to date. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased from 4.5 to 5.8 million euros, the net loss was reduced from 1.5 to 0.1 million euros.

In view of the figures available, the group sees itself “still within the forecast earnings range” for the current year. However, whether the goals will ultimately be achieved will only be decided in the Christmas business: the final quarter is “the strongest in terms of sales of the year” and will “be decisive for the results”, emphasized the retailer. If, in addition to the energy crisis and inflation, there are again restrictions due to the Covid 19 pandemic in the coming months, it will be “difficult for Ludwig Beck to meet the earnings forecasts,” the company warned.