LUDWIG BECK AG released its half-year financial report for 2026, revealing 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 results reflect a challenging market environment, with the German fashion retail sector experiencing a 4% sales drop overall, according to TW-Testclub, the largest panel in brick-and-mortar fashion retail. The weak start to the year, driven by cool weather that dampened demand for spring and summer fashion, along with subdued consumer sentiment amid economic uncertainties and geopolitical risks, contributed to the downturn.
LUDWIG BECK's sales in the textile segment fell to EUR 28.6 million from EUR 29.0 million, while non-textile sales decreased to EUR 8.5 million from EUR 8.8 million. The company's online shop also saw a decline. Additionally, access to Munich's Marienplatz was affected by negative developments in infrastructure and transport policy, further pressuring sales.
Gross profit decreased to EUR 15.1 million from EUR 15.5 million, with the gross profit margin dropping 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 and other operating expenses fell to EUR 6.5 million from EUR 6.8 million. EBIT improved to EUR -0.8 million from EUR -1.0 million, and the financial result widened to EUR -1.5 million from EUR -1.4 million. Earnings before tax stood at EUR -2.3 million, compared to EUR -2.4 million in the prior year, and earnings after tax were EUR -2.6 million, versus EUR -2.7 million.
Looking ahead, LUDWIG BECK expressed confidence for the third quarter, expecting gradual stabilization of macroeconomic and consumer conditions. The company anticipates further growth from the Munich Oktoberfest, which traditionally makes a significant contribution to sales. LUDWIG BECK believes it is well positioned with a carefully curated assortment blending 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.
