DGAP-News: CORRECTION NOTIFICATION: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG: LUDWIG BECK records improved earnings and a 1.1% gain in sales for the 1st nine months of 2014 - Textile retail sector ends with a negative growth


DGAP-News: Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG / Key
word(s): 9-month figures/Quarter Results
CORRECTION NOTIFICATION: Ludwig Beck am Rathauseck-Textilhaus
Feldmeier AG: LUDWIG BECK records improved earnings and a 1.1% gain in
sales for the 1st nine months of 2014 - Textile retail sector ends
with a negative growth

21.10.2014 / 10:09

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CORRECTION NOTIFICATION - Corporate News

LUDWIG BECK records improved earnings and a 1.1% gain in sales for the 1st
nine months of 2014 - Textile retail sector ends with a negative growth

Munich, October 21, 2014 - Munich Fashion Group LUDWIG BECK (ISIN DE
0005199905) ends the 3rd quarter of the 2014 fiscal year with a slight
increase in sales. According to TextilWirtschaft, German fashion retail
sales slipped 1.0% in the same period.

Development of sales
In the 1st nine months of the report year, the LUDWIG BECK Group achieved
gross sales of EUR 69.2m (previous year: EUR 68.5m), a 1.1% gain. Thus the
Group was able to, at least partially, elude the overall sector trend. The
online store at www.ludwigbeck.de in particular was successful.

The absence of tourists from Eastern Europe, due to crises, had a
noticeable effect. Their buying power used to be a long-established and
stable contributor to sales at the Marienplatz flagship store. Prolonged
construction on the lower floor and in front of the entrance of the subway
and tram station at Marienplatz has further restricted customer traffic as
well. Overall, LUDWIG BECK is currently experiencing the influence that
international crises, negative economic forecasts and health threat
scenarios are having on consumer confidence.

Earnings situation
Gross profits moved laterally and reached the amount of EUR 28.6m (previous
year EUR 28.7m). Thus the gross profit margin was at 49.1% (previous year:
49.8%). Here, the clearance sale in Men's Fashion, which increased cost of
goods, came to bear. Before remodeling in the department began, additional
discounts were granted to ensure the complete liquidation of all seasonal
inventories.

Absolute expenses against corresponding income of EUR 23.9m were higher
than in the previous year with EUR 23.3m. The expense ratio was 41.0%
compared to 40.4% in the previous year. The cost increase is mostly
attributed to a rise in personnel costs in connection with a 6.5% wage
increase implemented in the 1st half of 2013. Another factor was increased
other operating expenses associated with the execution of the will of the
recently deceased Mr. Toni Feldmeier - a former co-owner of the company and
minority shareholder of the holding company for the real estate at the
Munich Marienplatz - due to transactional costs (including gift tax) in the
amount of EUR 0.3m. With the will execution LUDWIG BECK's shares in the
real estate holding company increased by 18.27% from 67.67% to 85.94%.

The operational result (EBIT) was EUR 4.7m (previous year: EUR 5.4m), the
EBIT margin was 8.0% (previous year: 9.4%). Earnings before taxes (EBT)
reached EUR 3.8m (previous year: EUR 4.1m). Earnings after taxes rose,
partially due to tax situation optimizations, and amounted to EUR 2.9m
after nine months (previous year: EUR 2.7m).

Outlook 
LUDWIG BECK, as well as the entire sector, is faced with trans-boundary
factors having a potential influence on business developments that
currently is hard to predict. The Ukraine crisis is still lingering, the
Ruble declining, the situation in the Middle East a growing threat in the
eyes of consumers, fear of Ebola is spreading and the German economy is
slowing down - a whole chain of conditions has the potential to put
pressure on the demand for fashion in the months to come. Moreover, weather
conditions, even though an inherent part of the business, have become
imponderables. The actual weather situation rarely corresponds with past
empirical data anymore, as was apparent this summer.

Despite these adversities, the Group sees itself in a stable position and
counts on its unique business model. Compared to many other competitors in
the sector, who depend on brick-and-mortar businesses, LUDWIG BECK - with
its upscale selection and a sales atmosphere that is unique in all of
Germany - has the potential to cushion external risks to a large part. The
re-opening of the new and expanded Men's Fashion department is expected to
generate additional positive momentum. Furthermore, the online platform at
www.ludwigbeck.de offers the corporation a second successful pillar of
growth.

This is why LUDWIG BECK Executive Board member, Dieter Münch, besides
considering the currently unusually large number of business risks, also
keeps his eye on the self-generated opportunities: Our still young online
business fulfills expectations. The re-opening of Men's Fashion at the
Marienplatz flagship store was another success. Moreover, upcoming holiday
sales should, as in previous years, make positive contributions to 4th
quarter sales.

In its forecast for this year, management takes into account the current
situation and still expects a sales growth on Group level in the lower
one-figure percentage range and earnings similar to the previous year
(correction as of October 21, 2014 after first publication). Further
increasing effects of negative external factors could, however,
have a moderate influence on this assessment.

A detailed quarterly report can be found online at
www.ludwigbeck.de/english in the menu of the Investor Relations tab under
Financial Publications in the Quarterly Reports section.

Key Figures of the Group

<pre>

in EURm                                                 1/1/2014  1/1/2013
                                                        -         -
                                                        9/30/2014 9/30/2013
Gross sales                                                 69.2       68.5
Net sales                                                   58.2       57.6
Earnings before interest, taxes and depreciation
(EBITDA)                                                     6.9        7.5
Earnings before interest, taxes (EBIT)                       4.7        5.4
Earnings before taxes (EBT)                                  3.8        4.1
Earnings after taxes                                         2.9        2.7
Equity (as of end of period 9/30)                           63.5       60.0
Equity ratio in % (as of end of period 9/30)                55.5       55.4
Earnings per share (in EUR)                                 0.77       0.74
Investments                                                  5.3        2.7
Employees (as of end of period 9/30)1)                       478        444
Apprentices (number)                                          55         56


</pre>

1) without apprentices

LUDWIG BECK
The Munich Fashion Group is one of the top fashion retail companies in
Germany. With approx. 500 employees on an area of almost 11,600 m2, it
(incl. ludwigwigbeck.de GmbH) generates EUR 102.1m in sales (as of December
31, 2013).

LUDWIG BECK is located at Marienplatz in the heart of Munich. On seven
floors, LUDWIG BECK presents international fashion, leather goods and
accessories, and exclusive cosmetics. With more than 120,000 songs, it
offers the biggest collection of classical music, jazz, world music and
audio books of any in-store location in Europe. Launched at the end of
2012, LUDWIG BECK is now offering the extraordinary brand portfolio of its
beauty department online at www.ludwigbeck.de. A unique selection of more
than 9,000 products featuring more than 90 luxury and niche cosmetics
brands awaits online customers.

Investor Relations contact: 
esVedra consulting GmbH 
Metis Tarta 
t: +49 89 206021-210
f: +49 89 206021-610
mt@esvedragroup.com 

Group accounting contact: 
LUDWIG BECK AG 
Jens Schott 
t: +49 89 2 36 91 - 798 
f: +49 89 2 36 91 - 600 
jens.schott@ludwigbeck.de



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Language:    English                                                    
Company:     Ludwig Beck am Rathauseck-Textilhaus Feldmeier AG          
             Marienplatz 11                                             
             80331 München                                              
             Germany                                                    
Phone:       +49 (0)89 2 36 91-0                                        
Fax:         +49 (0)89 2 36 91-600                                      
E-mail:      info@ludwigbeck.de                                         
Internet:    www.ludwigbeck.de                                          
ISIN:        DE0005199905                                               
WKN:         519990                                                     
Listed:      Regulierter Markt in Frankfurt (Prime Standard), München;  
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart      
 
 
End of News    DGAP News-Service  
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