LUDWIG BECK AG released its half-year financial report for 2026, showing a 1.9% decline in gross sales to EUR 37.1 million compared to EUR 37.8 million in the same period last year. The company attributed the decrease to a challenging retail environment in Germany, where the fashion sector saw a 4% drop in sales during the first half of 2026, according to TW-Testclub. Cool weather in the first quarter dampened demand for spring and summer fashion, and although business improved in the second quarter, the sales losses could not be fully recovered. Subdued consumer sentiment, driven by economic uncertainties and geopolitical risks, further weighed on performance.
LUDWIG BECK faced additional headwinds in its home market of Munich city centre. Access to Marienplatz, a key location for the company, was affected by several negative developments in infrastructure and transport policy, impacting customer footfall. 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 in the first half of the year.
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. 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. Net loss after tax was EUR -2.6 million, narrowing from EUR -2.7 million.
Looking ahead, LUDWIG BECK expressed confidence for the third quarter, expecting gradual stabilization of macroeconomic and consumer conditions. The company highlighted the upcoming Munich Oktoberfest, starting in September, as a traditional driver of sales performance. LUDWIG BECK believes it is well positioned for the second half of the year with a carefully curated assortment blending timeless classics and latest fashion 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" – "Interim Reports".
