BERLIN — Based on its year-to-date performance, the Douglas Group has scaled back its sales and profit forecasts for its fiscal year ending Sept. 30.
The group, which includes Douglas perfumeries, as well as books, jewelry, fashion and confectionary retail businesses, is now expecting sales growth of about 2 percent, and earnings before taxes of 120 million euros, or $163.8 million, to 130 million euros, or $177.4 million. The firm’s original guidance called for sales growth of 3 to 6 percent and pre-tax earnings of 100 million euros, or 136.5 million, to 150 million euros, or $204.7
Douglas Group posted a net loss of 14.1 million euros, or $18.4 million, during the second quarter ended March 31, widening its loss of 5.5 million euros, or $7.2 million, in the same period a year ago. Group sales declined 1.9 percent to 657.3 million euros, or $859.7 million in the quarter, with like-for-like sales down 4.8 percent.
For the first six months, net earnings for the group decreased by 17.2 percent to 73.5 million euros, or $96.5 million. Douglas said group earnings were impacted by one-off effects of 12 million euros, or $15.8 million,
relating to shop closures, and added weak performance abroad pressured perfumery profits. Sales were affected by this year’s calendar shift of the Easter business into the third quarter, as well as consumer restraint, particularly in some important export markets, according to the company.
The Douglas Perfumery division, which includes 1,210 doors, had a second quarter pre-tax loss of 6.7 million euros or $8.8 million, compared with a pre-tax profit of 5.4 million euros or $7.1 million last year.
Perfumery sales for the quarter were down 2.5 percent to 374 million euros or $489.2 million.
In the first six months, perfumery sales rose 1.7 percent to 1.02 billion euros or $1.34 billion, though on a like-for-like basis, sales dropped 2.1 percent.
Domestic like-for-like sales were down 1.1 percent, while the 759 perfumeries outside Germany increased sales by 2.9 percent, spurred by multiple new openings and the acquisition of a majority shareholding in
retail operations in Croatia and Bulgaria last year. However, Douglas said continued strong performance in Russia and Poland could not make up for weakened sales in Spain, Portugal, Italy, Hungary and the Baltic States.
In the first seven months of the fiscal year, which includes Easter, nominal group sales rose 2.3 percent, though like-for-like sales slipped 1.6 percent.
Douglas shares were down 2.3 percent to 30.97 euros, or $42.27 in late afternoon trading.