LUDWIG BECK AG released its half-year financial report for fiscal year 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 underscore the challenging environment for brick-and-mortar fashion retail in Germany, which according to TW-Testclub, saw a 4% sector-wide sales drop in the first half of 2026.
The sales decline was driven by a weak start to the year due to cool weather that dampened demand for spring and summer collections. Although business improved in the second quarter, it was not enough to recover the earlier losses. Subdued consumer sentiment, fueled by economic uncertainties and geopolitical risks, further weighed on spending. For LUDWIG BECK, the situation was exacerbated by infrastructure and transport policy issues around Munich's Marienplatz, which limited access to its flagship store.
In the ‘textile’ segment, sales fell to EUR 28.6 million from EUR 29.0 million, while the ‘non-textile’ segment declined to EUR 8.5 million from EUR 8.8 million. The company's online shop also experienced a downturn, reflecting broader e-commerce trends.
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 at EUR 8.1 million. Other operating expenses fell to EUR 6.5 million from EUR 6.8 million.
LUDWIG BECK reported earnings before interest and tax (EBIT) of EUR -0.8 million, improving from EUR -1.0 million in the prior year. 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 previously. Net earnings after tax (EAT) stood at EUR -2.6 million, versus EUR -2.7 million last year.
Looking ahead, LUDWIG BECK remains cautiously optimistic. The company expects macroeconomic and consumer conditions to stabilize gradually, with the Munich Oktoberfest in September traditionally providing a significant sales boost. Management believes the company is well positioned with a curated assortment that blends timeless classics with current trends. The interim report is available on the company's website at kaufhaus.ludwigbeck.de under Investor Relations.
