The Munich retailer Ludwig Beck was able to increase its sales significantly in the first six months of the 2023 financial year. In view of the “overall pleasing first half of the year”, the company is now “positively looking forward to the second half of the year”, according to an interim report published on Thursday.
In the period from January to June, gross sales reached EUR 37.1 million and were thus 9.1 percent above the corresponding level of the previous year. Net sales also grew by 9.1 percent to EUR 31.2 million.
The retailer benefited above all from a strong first quarter, in which sales increased by 20 percent. In the second quarter they only reached the level of the same period of the previous year. Due to a “rainy April and May”, “the joy in the current spring/summer collection was somewhat restrained”, the company admitted.
The net loss remains constant
Earnings showed only minor changes compared to the first half of 2022, when the company still booked bridging funds as part of the government aid package against the effects of the Covid-19 pandemic. The loss before interest and taxes (EBIT) decreased from 0.4 to 0.3 million euros, the net loss was 0.8 million euros as in the same period of the previous year.
Management is now confident about the second half of the year. “Last year the Oktoberfest was still slightly overshadowed by the Covid 19 pandemic, which is why many Munich residents were still acting cautiously, but this year a little more normality will return,” says a statement. It is therefore to be expected that “this year the traditional costume business will again have a positive impact on the sales situation”.
The annual forecasts published in March remained unchanged. The company continues to expect gross sales of between 88 and 92 million euros and EBIT at group level of between four and five million euros for 2023.