LUDWIG BECK Reports 1.9% Sales Decline in H1 2026 Amid Challenging Retail Environment

LUDWIG BECK AG released its half-year financial report for fiscal year 2026, revealing a 1.9% decrease in gross sales to EUR 37.1 million compared to EUR 37.8 million in the same period last year. The decline mirrors broader trends in German fashion retail, which saw a 4% drop in sales during the first half of 2026, according to TW-Testclub, the largest panel in brick-and-mortar fashion retail.

The company attributed the sales downturn to multiple factors, including a weak start to the year due to cool weather that dampened demand for spring and summer collections. Despite a pickup in the second quarter, the initial losses were not fully recovered. Persistent economic uncertainties, geopolitical risks, and household financial concerns further weighed on consumer sentiment.

In the textile segment, sales fell to EUR 28.6 million from EUR 29.0 million, while the non-textile segment generated EUR 8.5 million, down from EUR 8.8 million. LUDWIG BECK's online shop also experienced a decline during the period. The company highlighted that access to its flagship store at Marienplatz in Munich was hampered by infrastructure and transport policy issues, adding to the challenging market environment.

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. 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) narrowed to EUR -2.3 million from EUR -2.4 million. The net loss after tax was EUR -2.6 million, compared to EUR -2.7 million in the prior year. No deferred tax income was recognized against EBT.

Looking ahead, LUDWIG BECK expressed confidence for the third quarter, anticipating gradual stabilization of macroeconomic and consumer conditions. The company expects a significant boost from the Munich Oktoberfest, which begins in September and traditionally contributes strongly to sales. LUDWIG BECK believes its carefully curated assortment, blending timeless classics with current trends, positions it well for the second half of the year.

The detailed half-year report is available on the company's website at http://kaufhaus.ludwigbeck.de under the "Investor Relations" section, "Financial Publications" heading.