LUDWIG BECK AG reported a 1.9% decrease in gross sales to EUR 37.1 million for the first half of its 2026 fiscal year, compared to EUR 37.8 million in the same period last year. The decline mirrors a broader 4% drop in the German brick-and-mortar fashion retail sector, according to TW-Testclub, the largest panel in the industry. The weak start to the year, driven by cool weather that dampened demand for seasonal spring and summer fashion, was a primary factor. Although sales improved in the second quarter, the losses from the first quarter could not be fully offset.
The company's sales were further impacted by a challenging market environment in Munich city centre, particularly around Marienplatz, due to negative developments in infrastructure and transport policy. 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. LUDWIG BECK's online shop also experienced a decline 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. The cost of goods sold remained stable at EUR 16.2 million. Other operating income increased slightly to EUR 2.0 million, while personnel expenses remained unchanged at EUR 8.1 million. 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, but the financial result worsened to EUR -1.5 million from EUR -1.4 million, leading to an EBT of EUR -2.3 million (previous year: EUR -2.4 million) and an EAT of EUR -2.6 million (previous year: EUR -2.7 million). No deferred tax income was recognised.
Looking ahead, LUDWIG BECK remains confident for the third quarter, expecting gradual stabilisation of macroeconomic and consumer conditions. The company anticipates further growth from the Munich Oktoberfest, starting in September, which traditionally contributes significantly to sales. The company believes it is well positioned strategically and product-wise for the second half of the year, with a curated assortment blending timeless classics with the 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'.
