LUDWIG BECK AG published its half-year financial report for the 2026 fiscal year on July 28, 2026, revealing a 1.9% decline in gross sales to EUR 37.1 million compared to EUR 37.8 million in the prior year. The results reflect a broader downturn 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. Cool weather in the first quarter dampened demand for seasonal spring and summer fashion, and while business improved in the second quarter, the losses could not be fully recouped.
The company attributed its performance to challenging overall conditions, including subdued consumer sentiment amid economic uncertainties, geopolitical risks, and concerns about personal finances. For LUDWIG BECK, the Munich city centre market was particularly affected by negative developments in infrastructure and transport policy, especially access to Marienplatz. Sales in the textile segment fell to EUR 28.6 million from EUR 29.0 million, while non-textile sales dropped to EUR 8.5 million from EUR 8.8 million. The online shop also saw a decline in the first half.
Earnings metrics showed slight improvement or stability. Gross profit decreased 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 flat at EUR 16.2 million. Other operating income increased to EUR 2.0 million, while personnel expenses held steady at EUR 8.1 million and other operating expenses declined to EUR 6.5 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 previous year. Net earnings after tax (EAT) were EUR -2.6 million versus EUR -2.7 million.
Looking ahead, LUDWIG BECK expressed cautious optimism for the third quarter, expecting a gradual stabilisation of macroeconomic and consumer conditions. The company highlighted the upcoming Munich Oktoberfest, starting in September, as a traditional driver of sales performance. Management emphasised that LUDWIG BECK is well positioned strategically and product-wise for the second half, with a curated assortment blending timeless classics and current trends to meet diverse customer needs. 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.
