LUDWIG BECK AG reported a 1.9% decline in gross sales to EUR 37.1 million for the first half of fiscal year 2026, compared to EUR 37.8 million in the same period last year, according to the company's half-year financial report released July 28, 2026. The results align with a broader downturn in German fashion retail, which experienced a 4% sales decline in the first half of 2026, as measured by TW-Testclub, the largest panel in brick-and-mortar fashion retail.
The sales decrease was primarily driven by a weak start to the year. Cool weather throughout much of the first quarter dampened demand for seasonal spring and summer fashion, which fell significantly short of expectations. Although business improved as the second quarter progressed, the company could not fully recoup the earlier losses. Subdued consumer sentiment, fueled by economic uncertainties, geopolitical risks, and concerns about personal financial situations, also weighed on performance.
In addition to these macroeconomic headwinds, LUDWIG BECK faced a challenging local market environment in Munich city centre, where access to Marienplatz was affected by several negative developments in infrastructure and transport policy. Sales in the textile segment reached EUR 28.6 million, down from EUR 29.0 million a year earlier, while non-textile sales fell to EUR 8.5 million from EUR 8.8 million. The company's online shop also saw a decline in the first half of the year.
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 fell to EUR 6.5 million from EUR 6.8 million. As a result, earnings before interest and tax (EBIT) improved slightly to EUR -0.8 million from EUR -1.0 million in the prior year.
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 a year earlier. Earnings after tax (EAT) stood at EUR -2.6 million, versus EUR -2.7 million in the previous year. No deferred tax income was recognized against EBT.
Looking ahead, LUDWIG BECK expressed confidence for the third quarter of 2026, expecting macroeconomic and consumer conditions to stabilize gradually. The company anticipates further growth from the Munich Oktoberfest, which begins in September and historically makes a significant contribution to sales. "LUDWIG BECK is well positioned for the second half of the year, both strategically and in terms of its products," the company stated. The carefully curated assortment combines timeless classics with the latest fashion trends, enabling flexible responses 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.
