LUDWIG BECK AG reported a 1.9% decline in gross sales to EUR 37.1 million for the first half of fiscal 2026, compared to EUR 37.8 million in the same period last year. The results, released on July 28, 2026, come as the German fashion retail sector experienced a 4% sales drop in the first half, according to TW-Testclub, the largest panel in brick-and-mortar fashion retail. The sector's decline was primarily attributed to a weak start to the year, with cool weather in the first quarter dampening demand for seasonal spring and summer fashion. Although business improved in the second quarter, the losses could not be fully recouped, and subdued consumer sentiment due to economic uncertainties and geopolitical risks further weighed on sales.
For LUDWIG BECK, the challenging market environment in Munich city centre exacerbated the situation. Access to Marienplatz was affected by several negative developments in infrastructure and transport policy, hindering foot traffic. 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 saw a decrease in the first half.
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 nearly flat 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 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, and earnings before tax (EBT) stood at EUR -2.3 million, compared to EUR -2.4 million in the prior year. After tax, the net loss was EUR -2.6 million, versus EUR -2.7 million.
Despite the headwinds, LUDWIG BECK expressed confidence for the third quarter, expecting macroeconomic and consumer conditions to stabilize gradually. The company anticipates further growth from the Munich Oktoberfest, which begins in September and traditionally contributes significantly to sales. LUDWIG BECK is well positioned strategically and with its product assortment, combining timeless classics with the latest trends to flexibly respond to 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."
