LUDWIG BECK AG released its half-year financial report for fiscal year 2026, revealing a challenging first half marked by a decline in sales and earnings. According to TW-Testclub, the German fashion retail sector saw a 4% drop in sales in the first half of 2026 compared to the same period last year, primarily due to a weak start to the year. Cool weather in the first quarter dampened demand for spring and summer fashion, and while business improved in the second quarter, the losses could not be fully recouped. Subdued consumer sentiment, driven by economic uncertainties, geopolitical risks, and personal financial concerns, also weighed on the sector.
LUDWIG BECK generated gross sales of EUR 37.1 million, a 1.9% decrease from EUR 37.8 million in the previous year. The company faced a challenging market environment in Munich city centre, particularly access to Marienplatz, which 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 declined to EUR 8.5 million from EUR 8.8 million. The online shop also experienced a decline in the first half of the year.
Earnings were impacted by the sales decline, with gross profit decreasing from EUR 15.5 million to EUR 15.1 million. The gross profit margin fell 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, while personnel expenses held at EUR 8.1 million. Other operating expenses decreased to EUR 6.5 million from EUR 6.8 million. 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, leading to EBT of EUR -2.3 million and EAT of EUR -2.6 million, both slightly better than the previous year's losses of EUR -2.4 million and EUR -2.7 million, respectively.
Despite the challenging market environment, LUDWIG BECK looks forward to the third quarter with confidence, expecting gradual stabilization of macroeconomic and consumer conditions. The company anticipates further growth from the Munich Oktoberfest, which starts in September and traditionally contributes significantly to sales. LUDWIG BECK is well positioned for the second half, with a carefully curated assortment combining timeless classics with the latest fashion trends. The detailed half-year report is available on the company's website at kaufhaus.ludwigbeck.de in the "Investor Relations" section under "Financial Publications."
