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DGAP-News: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG / Key word(s): Quarter Results
CORPORATE QUARTERLY STATEMENT
Economic environment and development in retail
The German economy fell into recession due to the COVID-19 pandemic in 2020. It left its mark on nearly all sectors of the economy. As a result, the federal budget in 2020 recorded a deficit for the first time in seven years. The industrial and service sectors continue to be particularly hard hit.
There was little hope at the start of 2021 after a new "hard" lockdown was imposed on businesses that do not meet daily needs in mid-December. In Bavaria, the lockdown lasted until March 7, 2021. After that, stationary retailers were allowed to reopen their doors if the seven-day incidence of infection was below 50 and if hygiene regulations were met. With a seven-day incidence of between 50 and 100, as it was in Munich according to the RKI, retailers were only allowed to offer "Click & Meet", i.e., customers had to book and register for an appointment before entering the shop. Although "Click & Meet" was positively accepted by LUDWIG BECK's customers, sales under these conditions were far from comparable to a normal shop opening.
After the stationary fashion retail reported sales declines of 78% and 74% for January and February, respectively, a drop in turnover of 46% was reported in March. According to TextilWirtschaft, a German magazine for the textile and fashion industry, larger retailers were hit harder and had to struggle with sales declines of up to 51%.
GENERAL PRESENTATION OF FIGURES IN THE INTERIM STATEMENT
CONSOLIDATED EARNINGS SITUATION
Development of sales
The operating result (EBIT) was €-3.5m and thus again significantly below the previous year (€-1.5m). The previous year was also burdened by the COVID-19 pandemic with a lockdown from March 18, 2020, onwards.
As in the previous year, the financial result was €-0.6m.
With earnings before taxes of €-4.2m (previous year: €-2.1m) and deferred tax income of €1.4m (previous year: €0.8m), the result after taxes was €-2.7m (previous year: €-1.4m).
Balance sheet structure
As in the previous year, the main components of long-term assets were the rights of use for rental agreements and the property at Munich's Marienplatz. In total, long-term assets amounted to €159.8m (December 31, 2020: €158.5m).
Short-term assets decreased significantly from €25.3 million (December 31, 2020) to €18.3m. Inventories increased from €12.0m (December 31, 2020) to €15.0m due to seasonal effects and the lockdown. Cash and cash equivalents were €0.4m (December 31, 2020: €11.2m). At the end of 2020, the proceeds from the sale of the property in Haar amounting to €10.1m were included in the bank balances. This amount was used to offset short-term bank liabilities at the beginning of the new fiscal year.
Balance sheet structure
Long-term liabilities decreased mainly due to the reduction of financial liabilities by €0.9m and amounted to €91.6m (December 31, 2020: €92.5m).
Short-term liabilities decreased from €31.6m (December 31, 2020) to €29.6 million. The settlement of short-term bank liabilities of €10.1m at the beginning of the fiscal year, which is shown under the capital structure, more than compensated for the effects from the negative result in the first quarter and the financing of the seasonal increase in inventories. The Group's total liabilities as of March 31, 2021, were, therefore, €121.3m (December 31, 2020: €124.2m).
Cash flow from operating activities after the first three months of 2021 was €-5.7m (previous year: €-5.1m). The cash flow from investing activities amounted to €-1.3m (previous year: €-0.4m). The investments mainly relate to the new Ladies' Trend department that opened in March in our Marienplatz department store. Cash flow from financing activities was €-3.9m (previous year: €8.3m).
Due to a possibly renewed "hard" lockdown, which is currently being discussed, and the associated uncertainty about further developments, the management still cannot make a serious forecast on sales and earnings for the fiscal year 2021. It is not possible to estimate the extent to which the sales and earnings of LUDWIG BECK will be affected by the ongoing pandemic situation and the resulting impediments to visiting the department store. The renewed closure of the department store, allowing customers to only "Click & Meet" with or without a test, and only one customer per 40 sqm sales area, the absence of customers especially tourists, supplier bottlenecks or potential additional official measures may also have a significant negative impact on the further fiscal year 2021.
The Executive Board assumes that the pandemic situation will only ease significantly after a nationwide vaccination and that a return to a normal business routine will be possible. The Executive Board's top priority remains the safeguarding of the company and the preservation of jobs.
GROUP KEY FIGURES
22.04.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG
+49 (0)89 2 36 91-0
+49 (0)89 2 36 91-600
Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange
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