BERLIN — Douglas Group reported a net loss in the three months ended June 30 as better trading conditions in Germany were offset by continued difficulties in neighboring Eastern Europe.

 

The German perfumery, book, jewelry, fashion and confectionery retail chain posted a net loss of 2.4 million euros, or $3.1 million at average exchange, in the third quarter, compared with a 500,000 euro, or $681,000, profit in the same period a year earlier.

 

Group earnings before interest, taxes, depreciation and amortization were down 10 percent to 26.1 million euros, or $33.3 million, while total sales rose 3.4 percent to 722 million euros, or $921.3 million. On a like-for-like basis, however, third-quarter sales declined 0.9 percent.

 

In the group’s 1,211-door Douglas Perfumeries division, EBITDA for the period rose 5.1 percent to 30.9 million euros, or $39.4 million. Sales gained 1.9 percent to 430.5 million euros, or $549.4 million, but dipped 0.7 percent on a like-for-like basis.

 

Douglas noted its perfumery sales performance in Germany was solid, but foreign sales remained impacted by weak conditions in Spain, Portugal, Hungary, Russia and the Baltic states.

 

In the first nine months, net income rose 18.2 percent and sales were up 3.2 percent, prompting Douglas to confirm its full-year sales and earnings forecasts. Sales growth is expected to be at the upper end of the target range of 0 to 2 percent, while earnings before taxes are seen at the upper end of the targeted range of 120 million to 130 million euros, or $154.9 million to $167.8 million at current exchange.

load comments
blog comments powered by Disqus