LUDWIG BECK AG reported gross sales of EUR 37.1 million for the first half of fiscal year 2026, a 1.9% decline from EUR 37.8 million in the same period last year, according to the company’s half-year financial report released Tuesday. The decrease reflects broader challenges in German brick-and-mortar fashion retail, which saw a 4% sales drop in the first half of 2026, as reported by TW-Testclub, the largest panel in the sector.
The weak start to the year was a major factor, with cool weather in the first quarter dampening demand for spring and summer fashion. Although business picked up in the second quarter, the company could not fully recover the lost sales. Subdued consumer sentiment, driven by economic uncertainties, geopolitical risks, and personal financial concerns, also weighed on performance.
For LUDWIG BECK, the first six months were further complicated by a challenging market environment in Munich city center. Access to Marienplatz, a key location for the company, was hindered by several negative developments in infrastructure and transport policy, the report noted.
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.
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. Net loss after tax narrowed to EUR -2.6 million from EUR -2.7 million.
Looking ahead, LUDWIG BECK expressed confidence for the third quarter, despite the challenging market environment. The company expects macroeconomic and consumer conditions to stabilize gradually. A key growth driver is the Munich Oktoberfest, starting in September, which traditionally makes a significant contribution to sales. LUDWIG BECK believes it is well positioned for the second half of the year, with a curated assortment blending timeless classics and the latest trends to meet diverse 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.
