Ludwig Beck, the German fashion retailer group, has seen a slight decrease in gross sales during the third quarter (Q3) in FY21 that ended on September 30 2021. This compares to sales of EUR41.0 in the same quarter in the prior fiscal. The operating loss (EBIT), however, for the nine-month span decreased from EUR5.0 millions in Q3 FY20 down to EUR0.4million in the reported period.
The COVID-19 Pandemic continued to dominate the third quarter of 2021. The Ifo Institute had forecast a strong economic recovery for summer 2021. However, after nine months of data collection the Institute has revised the forecast down by 0.8%. The company attributed this to the supply bottlenecks that have been caused by the COVID-19 Pandemic, which continues to persist.
The gross profit increased from EUR14.8 million to EUR15.2 million. EBITDA (earnings before taxes, depreciation, and amortization) increased to EUR4.5million (loss of EUR0.4million).
The sales of textiles in Q3 2020 were marginally higher at EUR27.7 millions, while the non-textile segment saw a decline to EUR12.3million.
Ludwig Beck, which usually considers the fourth quarter to be their strongest quarter, is cautiously optimistic about it. The relaxed COVID-19 regulations and the increasing vaccination rate are a reason for this. According to the company, they are also encouraged by the news of an open Christmas market.
