LUDWIG BECK AG released its half-year financial report for fiscal year 2026, revealing gross sales of EUR 37.1 million, a 1.9% decrease from EUR 37.8 million in the same period last year. The decline reflects broader challenges in the German fashion retail sector, which saw 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 weak start to the year was a key factor, with cool weather in the first quarter dampening demand for seasonal spring and summer fashion. While business improved in the second quarter, the initial losses were not fully recovered. Subdued consumer sentiment, driven by economic uncertainties, geopolitical risks, and personal financial concerns, also weighed on spending.
For LUDWIG BECK, the difficult market environment in Munich city centre posed additional challenges. Access to Marienplatz, a prime retail location, was affected by 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 declined to EUR 8.5 million from EUR 8.8 million. The company's online shop also experienced a downturn.
On the earnings side, 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 steady at EUR 8.1 million and other operating expenses fell to EUR 6.5 million from EUR 6.8 million.
Earnings before interest and tax (EBIT) improved to EUR -0.8 million from EUR -1.0 million, but the financial result worsened to EUR -1.5 million from EUR -1.4 million. Consequently, earnings before tax (EBT) stood at EUR -2.3 million, compared to EUR -2.4 million in the prior year, and earnings after tax (EAT) were EUR -2.6 million, slightly better than last year's EUR -2.7 million. No deferred tax income was recognised against EBT.
Looking ahead, LUDWIG BECK expressed confidence for the third quarter, anticipating a gradual stabilisation of macroeconomic and consumer conditions. The Munich Oktoberfest, which starts in September and traditionally contributes significantly to sales, is expected to drive growth. The company believes it is well positioned for the second half of the year, both strategically and with its product assortment that blends timeless classics with the latest trends. 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".
The implications of LUDWIG BECK's performance reflect broader industry trends, with the German fashion retail sector facing headwinds from weather, consumer caution, and local infrastructure issues. However, the company's optimistic outlook suggests that seasonal events and strategic positioning may help mitigate these challenges in the second half of the year.
