Good sales performance of Douglas Perfumeries in Poland, Russia

12 May '09

5 min read

The DOUGLAS Group has asserted itself in a challenging economic environment. Following the first seven months of its 2008/09 fiscal year (October 1, 2008 to April 30, 2009), which contains the all-important Easter business for the DOUGLAS Group, sales climbed by 2.3 percent to 2.0 billion EUR. Like-for-like sales – which only reflect those locations operating during the current and previous years' quarters – just missed the prior period's sales figure by 1.6 percent. This was adversely affected by the weak consumer demand in certain important foreign markets as a result of the financial and economic crisis.

In Germany, net sales at the end of April reached 1.3 billion EUR; up 1.7 percent over the prior year. Like-for-like sales were down by 1.1 percent over the previous year. Foreign sales rose by 3.5 percent to 705.6 million EUR in the first seven months. Like-for-like sales abroad were down by 2.5 percent, because the good sales performance of the Douglas Perfumeries in Poland and Russia could not compensate for the sales decline reported in Spain, Portugal, Italy, Hungary and in the Baltic States.

"Overall, we were not dissatisfied with the performance as of the end of April. In comparison with the competition, we were able to maintain our good position, especially in Germany. Unfortunately, certain foreign markets were hit hard by a buying resistance. But, pleasing results were continued to be reported in Poland, Russia and since several months once again in Turkey.

Given the slowly advancing economic environment, we are confident that we will be able to overcome the current turbulences. We continue to place trust in our strong service, quality and attractive ambiance – and all that at fair prices, of course," commented Dr. Henning Kreke, President and CEO of DOUGLAS HOLDING AG.

Outlook
The prognosis for the rest of the fiscal year is extremely hard to estimate for the coming months, because of the macroeconomic framework conditions which are difficult to anticipate. Nevertheless, the DOUGLAS Group has specified its prognosis for the 2008/09 fiscal year – as announced in January. On the basis of the figures presented, the Executive Board assumes that sales growth of around two percent will be achieved.

The anticipated operating earnings before taxes are now expected to lie between 120 and 130 million EUR before one-off effects. These are expected to be about 20 to 30 million EUR in the fiscal year and largely relate to the sub-leasing of the AppelrathCüpper fashion house in Berlin as well as the impact from store closures of unprofitable Douglas Perfumeries abroad on a lasting basis.

Performance in the first half year 2008/09 (October 1, 2008 to March 31, 2009)
The DOUGLAS Group's net sales rose by 1.9 percent to almost 1.8 billion EUR in the first half of the 2008/09 fiscal year compared to the previous year. Like-for-like sales were down 2.1 percent over the prioryear, which were negatively impacted by this year's late Easter business and the overall restraint in consumer spending.

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