LUDWIG BECK AG released its half-year financial report for the 2026 fiscal year, 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 come as the German fashion retail sector experienced a 4% drop in sales during the first half of 2026, according to TW-Testclub, the largest panel in brick-and-mortar fashion retail. The sector-wide downturn was primarily attributed to a weak start to the year, with cool weather in the first quarter suppressing demand for seasonal spring and summer fashion. Although business improved as the second quarter progressed, the initial sales losses could not be fully recovered. Additionally, subdued consumer sentiment, driven by economic uncertainties, geopolitical risks, and concerns about personal finances, further dampened performance.
For LUDWIG BECK, the challenging market environment was compounded by specific difficulties in Munich city centre. Access to Marienplatz, a key location for the company, was affected by several negative developments in infrastructure and transport policy. In the first half of 2026, sales in the textile segment fell to EUR 28.6 million from EUR 29.0 million a year earlier, 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.
Despite the sales drop, LUDWIG BECK's earnings slightly improved. Earnings before interest and tax (EBIT) improved to EUR -0.8 million from EUR -1.0 million in the previous year, and earnings before tax (EBT) rose to EUR -2.3 million from EUR -2.4 million. Earnings after tax stood at EUR -2.6 million, compared to EUR -2.7 million in the prior year. Gross profit decreased to EUR 15.1 million from EUR 15.5 million, with the gross profit margin declining to 48.2% from 48.8% due to higher price reductions. Cost of goods sold remained stable at EUR 16.2 million.
Looking ahead, LUDWIG BECK expresses confidence for the third quarter of 2026, expecting a gradual stabilisation of macroeconomic and consumer conditions. The company anticipates further growth from the Munich Oktoberfest, which starts in September and traditionally contributes significantly to sales. LUDWIG BECK believes it is well positioned strategically and product-wise, with a carefully curated assortment blending timeless classics with the latest fashion trends to respond flexibly to 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.
