LUDWIG BECK AG released its half-year financial report for fiscal year 2026, showing a decline in gross sales to EUR 37.1 million, a 1.9% decrease from the previous year's EUR 37.8 million. The results reflect a difficult market environment for the fashion retail sector in Germany, which saw a 4% sales drop in the first half of 2026 according to TW-Testclub, the largest panel in brick-and-mortar fashion retail. The decline was primarily due to a weak start to the year, with cool weather in the first quarter dampening demand for seasonal spring and summer fashion. Although business improved in the second quarter, the earlier losses could not be fully recouped. Subdued consumer sentiment, driven by economic uncertainties, geopolitical risks, and personal financial concerns, further weighed on sales.
For LUDWIG BECK, the first six months were also marked by a challenging market environment in Munich city centre. Access to Marienplatz, a key location for the company, was affected by several negative developments in infrastructure and transport policy. Sales in the 'textile' segment fell to EUR 28.6 million from EUR 29.0 million, while 'non-textile' sales dropped to EUR 8.5 million from EUR 8.8 million. The company's online shop also experienced a decline in sales during the period.
Earnings before interest and tax (EBIT) improved slightly to EUR -0.8 million from EUR -1.0 million, while earnings before tax (EBT) narrowed to EUR -2.3 million from EUR -2.4 million. Net earnings after tax (EAT) were EUR -2.6 million, compared to EUR -2.7 million in the prior year. Gross profit margin declined to 48.2% from 48.8% due to higher price reductions, and other operating expenses decreased to EUR 6.5 million from EUR 6.8 million.
Looking ahead, LUDWIG BECK expressed confidence for the third quarter, anticipating a gradual stabilization of macroeconomic and consumer conditions. The company expects further growth from the Munich Oktoberfest, which begins in September and traditionally contributes significantly to sales. LUDWIG BECK emphasized its strategic positioning and curated assortment, blending timeless classics with current trends to respond flexibly to customer needs. The detailed half-year report is available on the company's website at kaufhaus.ludwigbeck.de in the Investor Relations section under Financial Publications.
