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, according to its half-year financial report released today. The company attributed the decrease to a challenging market environment in Munich city center, where access to Marienplatz was affected by negative developments in infrastructure and transport policy, as well as subdued consumer sentiment across Germany.
The broader German fashion retail sector experienced a 4% sales decline in the first half of 2026, according to TW-Testclub, the largest panel in brick-and-mortar fashion retail. Weak demand for seasonal spring and summer fashion due to cool weather in the first quarter, coupled with economic uncertainties and geopolitical risks, led households to remain cautious in their spending. While business picked up in the second quarter, the sales losses from earlier months could not be fully recouped.
LUDWIG BECK's textile segment generated sales of EUR 28.6 million, down from EUR 29.0 million a year ago, while non-textile sales fell to EUR 8.5 million from EUR 8.8 million. The company's online shop also experienced a decline during the period. 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 and 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, but the financial result worsened to EUR -1.5 million from EUR -1.4 million, leading to earnings before tax (EBT) of EUR -2.3 million compared to EUR -2.4 million. Earnings after tax (EAT) stood at EUR -2.6 million, slightly better than the EUR -2.7 million loss in the prior year.
Looking ahead, 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 makes a significant contribution to sales. LUDWIG BECK stated it is well positioned strategically and product-wise for the second half of the year, with a curated assortment blending timeless classics and the latest fashion trends to meet diverse customer needs.
The detailed half-year report for fiscal 2026 is available on the company's website at http://kaufhaus.ludwigbeck.de in the Investor Relations section under Financial Publications. For business leaders, this news highlights the ongoing challenges in German retail, including infrastructure impacts and consumer caution, and underscores the importance of adapting to shifting market conditions.
