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Douglas Group Posts Q3 Net Loss

Restructuring costs hit the German retailer.

BERLIN — Hit by restructuring costs for its Thalia book arm, Douglas Group posted a third-quarter net loss of 9.8 million euros, or $12.6 million, against a net gain of 3.3 million euros, or $4.7 million, in the same period a year ago.

Sales for the Hagen, Germany-based firm — whose activities include Douglas Perfumeries and retailers of confectionary, fashion, jewelry and books — were up 0.5 percent to 746.5 million euros, or $959 million, in the three months ended June 30. On a like-for-like basis, revenues were down 1.8 percent. Adjusted earnings before interest, taxes, depreciation and amortization fell 29.2 percent to 24.2 million euros, or $31.1 million.

Dollar figures are converted at the average exchange rate for the period to which they refer.

In Germany, the Douglas Group registered a 0.2 percent sales dip for the quarter, while international sales grew 2 percent.

Douglas Perfumeries’ 1,186 doors posted third-quarter sales of 439.3 million euros, or $564.4 million, an uptick of 1.8 percent. On a like-for-like basis, sales dropped 1.9 percent. Sales at the company’s 444 perfumeries in Germany rose 0.9 percent to 231.7 million euros, or $297.7 million. The chain’s 742 international doors registered quarterly sales of 207.6 million euros, or $266.7 million, up 2.8 percent.

Douglas confirmed its annual forecast of slight growth in sales to 3.4 billion euros, or $4.22 billion at current exchange. The company stated it would focus investment in the current and coming fiscal year on modernizing and expanding its perfumery chain.

It has opened 32 new perfumeries so far this fiscal year, with growth concentrated in Poland, France and Romania. Due to high restructuring expenses, the company said it does not expect to distribute a dividend.