LUDWIG BECK AG reported gross sales of EUR 37.1 million for the first half of fiscal year 2026, a 1.9% decline 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 decrease reflects a broader downturn in the German fashion retail sector, which saw a 4% drop in sales during the first half, as noted by TW-Testclub, the largest panel in brick-and-mortar fashion retail.
The weak start to the year was primarily attributed to cool weather in the first quarter, which dampened demand for seasonal spring and summer fashion. Although business improved in the second quarter, the sales losses could not be fully recovered. Subdued consumer sentiment, driven by economic uncertainties, geopolitical risks, and personal financial concerns, further weighed on performance. Additionally, LUDWIG BECK faced a challenging market environment in Munich city centre, particularly access to Marienplatz, due to negative developments in infrastructure and transport policy.
In the textile segment, sales amounted to EUR 28.6 million, down from EUR 29.0 million a year earlier. The non-textile segment generated EUR 8.5 million, compared to EUR 8.8 million in the previous year. The company's online shop also experienced a decline in sales during the period.
Gross profit decreased to EUR 15.1 million from EUR 15.5 million, with the gross profit margin falling 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 steady at EUR 8.1 million. Other operating expenses declined to EUR 6.5 million from EUR 6.8 million.
EBIT improved to EUR -0.8 million from EUR -1.0 million in the prior year. The financial result was EUR -1.5 million, compared to EUR -1.4 million, leading to an EBT of EUR -2.3 million (previous year: EUR -2.4 million). Earnings after tax stood at EUR -2.6 million, versus EUR -2.7 million in the first half of 2025. No deferred tax income was recognised against EBT, consistent with the previous year.
Looking ahead, LUDWIG BECK expressed confidence for the third quarter, expecting gradual stabilisation of macroeconomic and consumer conditions. The company anticipates further growth from the Munich Oktoberfest, which begins in September and traditionally contributes significantly to sales. LUDWIG BECK believes it is well positioned for the second half with a strategically curated assortment that combines timeless classics with the latest fashion trends.
The detailed half-year report for fiscal year 2026 is available on the company's website at http://kaufhaus.ludwigbeck.de in the Investor Relations section under Financial Publications.
