NEW YORK — KarstadtQuelle Group AG’s much wider net loss in the second quarter forced the company to lower its full-year earnings and sales guidance.

For the three months ended June 30, Europe’s largest department store and mail order group recorded a net loss of 188.1 million euros, or 1.77 euros a diluted share, versus last year’s loss of 27.8 million euros, or 27 euro cents.

In dollars, the Essen, Germany-based retailer’s loss was $266.7 million, or $2.13, versus $31.6 million, or 31 cents. Euros have been converted at average exchange rates for the corresponding periods.

Net sales for the quarter fell 7.6 percent to 3.35 billion euros, or $4.04 billion, from 3.36 billion euros, or $4.12 billion.

As a result of the weak second quarter, KarstadtQuelle now anticipates a swing to a full-year loss before taxes and amortization of 160 million to 200 million euros, or about $193 million to $241 million. By comparison, last year the company had profits before taxes and amortization of 225.2 million euros, or $254.8 million. Sales are forecast to drop 4.5 to 5 percent for the year.

KarstadtQuelle said German consumers’ reluctance to spend during the quarter, and shortfalls on the company’s part to connect with its customers and differentiate its brands, were to blame.

“The key to success is and remains the customer,” said chairman Christoph Achenbach in a statement. “We must increase customer satisfaction and more sharply define the profile of our strong Karstadt, Quelle and Neckermann brands.”

For the first half of the fiscal year, the company reported a deeper net loss of 298.4 million euros, or 2.81 euros a share, versus last year’s loss of 53.1 million euros, or 50 euro cents. In dollars, the loss was $366.1 million, or $3.45, against $58.7 million, or 55 cents.

Net sales decreased 6 percent to 6.87 billion euros, or $8.43 billion, from 7.31 billion euros, or $8.97 billion, a year ago.

— Dan Burrows

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