LUDWIG BECK AG released its half-year financial report for fiscal year 2026, revealing a 1.9% decline in gross sales to EUR 37.1 million compared to EUR 37.8 million in the same period last year. The results underscore the challenging conditions in the German fashion retail sector, which, according to TW-Testclub, experienced a 4% sales drop in the first half of 2026. The weak start to the year, exacerbated by cool weather and subdued consumer sentiment, significantly impacted demand for seasonal fashion, with sales losses that could not be fully recovered despite a pickup in the second quarter.
LUDWIG BECK's performance was further hindered by specific headwinds in Munich city centre, particularly around Marienplatz, where infrastructure and transport policy issues affected customer access. Sales in the textile segment fell to EUR 28.6 million from EUR 29.0 million, while non-textile sales decreased to EUR 8.5 million from EUR 8.8 million. The company's online shop also saw a decline during the period.
The earnings situation mirrored the sales trend. Gross profit decreased from EUR 15.5 million to EUR 15.1 million, with the gross profit margin slipping to 48.2% from 48.8% due to higher price reductions. Cost of goods sold remained stable at EUR 16.2 million. Other operating income increased slightly to EUR 2.0 million, while personnel expenses held steady at EUR 8.1 million. Other operating expenses were reduced to EUR 6.5 million from EUR 6.8 million. Earnings before interest and tax (EBIT) improved marginally to EUR -0.8 million from EUR -1.0 million, reflecting cost control measures. However, the financial result worsened to EUR -1.5 million from EUR -1.4 million, leading to earnings before tax (EBT) of EUR -2.3 million compared to EUR -2.4 million previously. Earnings after tax (EAT) stood at EUR -2.6 million, slightly better than the EUR -2.7 million loss in the prior year.
Looking ahead, LUDWIG BECK remains cautiously optimistic for the third quarter, anticipating a gradual stabilisation of macroeconomic and consumer conditions. The company expects a boost from the Munich Oktoberfest, which traditionally contributes significantly to sales. LUDWIG BECK's carefully curated assortment, blending timeless classics with current trends, positions it to adapt to evolving customer needs. The detailed half-year report is available on the company's website at http://kaufhaus.ludwigbeck.de in the Investor Relations section under Financial Publications.
