DOUGLAS Group is satisfied with its sales trend

The DOUGLAS Group is satisfied with the sales trend thus far and after the first seven months of the 2011/12 fiscal year (October 1, 2011 to April 30, 2012) shows sales growth of 2.0 percent to just around EUR 2.2 billion. As of the end of April, like-for-like sales grew by 1.7 percent.

In Germany, sales as of the end of April rose by 3.6 percent (like-for-like: +3.6 percent). Internationally, however, the figure fell slightly, going down by -1.2 percent (like-for-like: -1.9 percent).

"All in all, we are reasonably satisfied with the operating result in the first half year," said Dr. Henning Kreke, President and CEO, commenting on the reported figures. "Particularly, our German Douglas perfumeries and our Christ jewelry stores performed well. On the opposite end of the spectrum, our Thalia bookstores failed to beat last year’s sales performance."

Trend during the first half of 2011/12 (October 1, 2011 to March 31, 2012)

In the first half of the year (October 1, 2011 – March 31, 2012), which contained both the vital Christmas season and the Easter season that was earlier this year, consolidated sales rose by 2.3 percent to more than EUR 1.9 billion. Adjusted by the perfumeries in Russia that were sold, this means an increase of 3.2 percent. Like-for-like, sales were 2.4 percent higher than in the previous year.

The online shops of the DOUGLAS Group contributed to the positive trend with a rise in sales of 15 percent to a total of more than EUR 130 million. During the reporting period, their share of the Group’s total sales was about 7 percent.

"The good performance of Douglas and Christ in our key home market of Germany is truly gratifying," said Dr. Henning Kreke. In Germany, sales growth of 4.2 percent was generated (like-for-like: +4.3 percent), totaling sales of EUR 1.3 billion. Foreign sales, however, fell by 1.5 percent (like-for-like: -1.3 percent) to just around EUR 620 million due to the sale of the perfumeries in Russia in the previous year and continuing restraint by consumers in some markets. However, adjusted by the sale of the perfumeries in Russia, foreign sales rose by 1.4 percent.

Performance and outlook in the individual divisions

Easter sales, which are vital for the DOUGLAS Group’s lines of distribution, occurred largely in March this year, while last year, they had been recorded in the April figures. To enable as precise a comparison as possible, the following overview presents the cumulative sales after seven months, i.e., as of the end of April.

At EUR 1.2 billion, sales revenue of the approximately 1,200 Douglas perfumeries as of the end of April was 2.2 percent above last year’s figure. Online sales performed outstandingly, experiencing a boost of 57 percent compared to the previous year and totaling about EUR 65 million.

Perfumeries in the domestic market increased their sales revenue by a substantial 6.2 percent to EUR 656 million. Douglas perfumeries in foreign markets achieved sales revenue totaling EUR 555 million. This corresponds to a decline of 2.1 percent, which is largely the result of the sale of the Russian network of stores. Sales in the Netherlands, Austria, and the Baltic States performed positively. On the other hand, performance in Portugal, Spain, Italy, and Switzerland was unsatisfactory. In the first half of the year, 25 new perfumeries were opened, 21 of which were opened abroad, primarily in Poland, France, and Romania.

In the current fiscal year, about EUR 75 million are available for expansion. A total of about 40 new Douglas perfumeries (primarily in Poland and Italy) are planned as well as the remodeling of the existing store network and the expansion of online activities. Within the scope of the optimization of the product range, an increase of the current share held by exclusive brands and private labels in the division’s total revenue is planned, envisaging an increase from today’s 14 percent to about 20 percent within the next two to three years. Another strategic focus is a rapid international expansion of the division’s multi-channel activities.