BERLIN — The 767-door Douglas Perfumery chain bucked the going trend and grew sales 5.1 percent to $628.3 million, or 529 million euros, in the first half of 2003. On a same-space basis, sales grew 0.2 percent. Dollar figures have been converted from the euro at current exchange.
The more than 400 Douglas doors in Germany increased sales 1.2 percent, while outside of Germany, sales rose 12.1 percent.
Profits before interest, taxes and depreciation for the Douglas Group, which also includes fashion, book, candy and jewelry retail operations, reached last year’s level of $48.8 million, or 43.2 million euros. Profit figures for the perfumery division were not released.
Chairman Henning Kreke said longer store hours, which have already led to 10 to 15 percent increases in Saturday sales, should help to maintain Douglas’ positive momentum
The company’s shareholders have approved a change in Douglas’ fiscal year, which will now run from Oct. 1, 2002 to Sept. 9. For this period, Douglas is forecasting flat sales and operating profits. The company pointed out that the new fiscal year would not include the 2003 Christmas season, the period in which the company traditionally generates all of its profit. Christmas will now fall in the first quarter of the fiscal year ending in September 2004.
— Melissa Drier
The strong euro hampered Beiersdorf cosmed-division sales in the first half of 2003 1.6 percent to $1.8 billion, or 1.62 billion euros, although sales for the period rose 4.5 percent at constant exchange rates. Dollar figures have been converted from the euro at current exchange.
Cosmed earnings before interest and taxes for the period reached $247.5 million, or 219 million euros, down 2.8 percent from $255.4 million, or 226 million euros.
Beiersdorf said cosmed sales were down in Germany, Russia and the U.S. Elsewhere in Europe, as well as Africa, Asia and Australia, sales grew significantly, the company said without releasing specific figures.
Nivea remained the motor of sales, increasing sales 9.8 percent when adjusted for currency effects, followed by Labello which grew currency-adjusted sales of 5.8 percent.For the year ahead, Beiersdorf is projecting group sales growth of 5 percent on a currency-adjusted basis, and an EBIT return on sales of 10 percent. Net profits are expected to remain at about 6 percent of sales.
The Hamburg-based group said it expects sales in Germany to remain weak, but said the outlook for economic developments in the American market for the second half “remain positive.”
Beiersdorf remained silent on recent reports that the firm is interested in acquiring SSL International plc, a British health care group that owns Durex condoms. A source close to the company said SSL’s product ranges were not in with Beiersdorf’s medical product range.
More Allou Woes
New York — Federal prosecutors on Tuesday indicted eight people, including three former top executives of bankrupt Allou Healthcare Inc., in connection with a fire at the firm’s Brooklyn warehouse last September that destroyed much of Allou’s inventory. The former executives who were arrested on fraud charges were Victor Jacobs, chairman, and his sons, Herman, Jacob and Ari. Of the three sons, only Herman and Jacob were officers of the company. As reported, turnaround expert Richard Sebastiao in late April fired the executives, although they retained their board positions. The three Jacobs family members are the controlling stockholders of Allou. Allou, as reported, was forced into bankruptcy in April after its lenders — Congress Financial Corp., Citibank and LaSalle Business Credit Inc. — filed an involuntary Chapter 11 petition against the firm in April. The three forced Allou into a Brooklyn bankruptcy court after discovering that the beauty distributor’s assets and inventory were insufficient to satisfy their claims, which total at least $67.7 million.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews