LUDWIG BECK AG has released its half-year financial report for the 2026 fiscal year, revealing gross sales of EUR 37.1 million, a 1.9% decline 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, experienced a 4% sales drop in the first half of 2026 due to a weak start to the year and subdued consumer sentiment.
The company attributed the sales performance to several factors, including a cool first quarter that dampened demand for spring and summer fashion, as well as ongoing economic uncertainties and geopolitical risks that made households cautious about spending. Additionally, LUDWIG BECK faced a challenging market environment in Munich city centre, with infrastructure and transport policy issues affecting access to Marienplatz, a key location for the department store.
Sales in the textile segment fell to EUR 28.6 million from EUR 29.0 million, while non-textile sales decreased to EUR 8.5 million from EUR 8.8 million. The company’s online shop also experienced a decline during the period. Gross profit dropped to EUR 15.1 million from EUR 15.5 million, with the gross profit margin narrowing 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 (previous year: EUR 1.9 million), while personnel expenses held steady at EUR 8.1 million. Other operating expenses decreased 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, and earnings before tax (EBT) stood at EUR -2.3 million, compared to EUR -2.4 million in the prior year. Net earnings after tax were EUR -2.6 million, versus EUR -2.7 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 believes it 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 for the 2026 fiscal year is available on the company's website at http://kaufhaus.ludwigbeck.de in the "Investor Relations" section under "Financial Publications" and "Interim Reports".
