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 decrease reflects broader challenges in the German fashion retail sector, which according to TW-Testclub saw a 4% drop in sales in the first half of 2026. The weak start to the year, marked by cool weather that dampened demand for spring and summer collections, coupled with ongoing consumer caution due to economic uncertainties and geopolitical risks, contributed to the downturn.
The company's textile segment generated EUR 28.6 million in sales, down from EUR 29.0 million, while non-textile sales fell to EUR 8.5 million from EUR 8.8 million. LUDWIG BECK's online shop also experienced a decline in the first half. In addition to sector-wide headwinds, the company faced a challenging market environment in Munich city centre, particularly at Marienplatz, where infrastructure and transport policy issues hindered access.
Gross profit decreased to EUR 15.1 million from EUR 15.5 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 rose slightly to EUR 2.0 million, while personnel expenses held at EUR 8.1 million and other operating expenses fell to EUR 6.5 million from EUR 6.8 million. EBIT improved to EUR -0.8 million from EUR -1.0 million, and earnings before tax (EBT) stood at EUR -2.3 million, compared to EUR -2.4 million in the prior year. Earnings after tax (EAT) narrowed to EUR -2.6 million from EUR -2.7 million.
Despite the subdued first half, LUDWIG BECK expressed confidence for the third quarter, anticipating gradual stabilization of macroeconomic and consumer conditions. The company highlighted the upcoming Munich Oktoberfest, starting in September, as a traditional sales driver. Management believes the company is well positioned strategically and product-wise for the second half, with a curated assortment blending timeless classics and current trends. The detailed half-year report is available on the company's website at http://kaufhaus.ludwigbeck.de under Investor Relations.
