The Munich fashion retailer Ludwig Beck slipped back into the red in 2022 despite increasing sales.
Sales including online sales increased by 27 percent to 83.8 million euros. In the previous year, the proceeds were 66 million euros. But the fashion retailer still recorded a loss of 600,000 euros. This year’s shortfall was offset in full by withdrawals from retained earnings.
In the previous year, a net profit of 3.6 million euros was posted, while in 2020 the retailer had to accept a deficit of 1.7 million euros.
Ludwig Beck AG announced on Wednesday that the restrained consumer mood had a negative impact on sales development despite a “positive trend” in the summer months .
Oktoberfest and traditional costume department drive sales
Sales from the “Textile” segment increased to 60.8 million euros (previous year: 44.4 million), while “Non-Textile” and “Beauty-Online” accounted for the remaining 21.5 million euros (previous year: 21.5 Millions).
The fashion retailer’s newly opened traditional costume department was able to make a “particularly gratifying” contribution. After a forced two-year break, the Oktoberfest took place again this year and the department’s sales were well above the level of 2019. The Christmas business was positive compared to the previous year, but was not yet comparable to a year before the pandemic.
Ludwig Beck is optimistic about the future
In line with the sales trend, net income increased from EUR 25.4 million to EUR 35 million. The net gross profit margin also increased significantly by four percent to 49.8 percent. This was due to fewer discounts and discounts. According to the announcement, Ludwig Beck is cautiously optimistic about the future. Accordingly, the fashion retailer will also invest in the flagship at Munich’s Marienplatz this year. Management is also assuming gross sales of between EUR 88 million and EUR 92 million, despite the difficult economic environment. They are also hoping for an operating result of four to five million euros.