LUDWIG BECK AG reported gross sales of EUR 37.1 million for the first half of fiscal year 2026, down 1.9% from EUR 37.8 million in the same period last year, according to the company’s half-year financial report released Tuesday. The company said the decline reflected broader difficulties in German brick-and-mortar fashion retail, where sales fell 4% in the first half of 2026, according to TW-Testclub, the largest panel in the sector. For a retailer with a prominent physical presence in Munich, the comparison underscores how closely its performance is tied to city-center foot traffic and broader consumer spending patterns.

A weak start to the year weighed on results, with cool weather in the first quarter reducing demand for spring and summer fashion. Business improved in the second quarter, but LUDWIG BECK was unable to fully recover the sales lost earlier in the year. The company also pointed to subdued consumer sentiment, citing economic uncertainties, geopolitical risks, and personal financial concerns. Those conditions remained a relevant backdrop for the half-year period, particularly for discretionary categories such as fashion and accessories.

For LUDWIG BECK, the first six months were further affected by a difficult market environment in Munich city center. The report said access to Marienplatz, a key location for the company, was hindered by several negative developments in infrastructure and transport policy, adding another operational headwind for a business that depends on central retail access.

Sales in the textile segment declined to EUR 28.6 million from EUR 29.0 million, while non-textile sales fell to EUR 8.5 million from EUR 8.8 million. The company’s online shop also recorded a decline in the first half, showing that weakness was not limited to the physical store channel.

Gross profit slipped to EUR 15.1 million from EUR 15.5 million, while the gross profit margin narrowed to 48.2% from 48.8% due to higher price reductions. Cost of goods sold remained nearly unchanged at EUR 16.2 million. Other operating income rose slightly to EUR 2.0 million, personnel expenses were steady at EUR 8.1 million, and 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. Earnings before tax (EBT) came to EUR -2.3 million, compared with EUR -2.4 million a year earlier, and net loss after tax narrowed to EUR -2.6 million from EUR -2.7 million.

Looking ahead, LUDWIG BECK said it remains confident for the third quarter despite the challenging market environment. The company expects macroeconomic and consumer conditions to stabilize gradually. It cited the Munich Oktoberfest, which begins in September and traditionally contributes significantly to sales, as a key period for the business. LUDWIG BECK said it believes it is well positioned for the second half of the year, supported by a curated assortment combining timeless classics with current trends to meet a range of customer needs.

The detailed half-year report is available on the company’s website at in the Investor Relations section under Financial Publications.