The business of the largest German perfumery chain is not yet suffering from the high inflation and the Ukraine war. Customers are more than happy to finally be able to party again.
Germany’s largest perfumery chain Douglas is benefiting from the growing party mood in Europe after the end of most of the Corona requirements. “You can tell that the parties are back,” said Douglas boss Tina Müller.
In the second quarter of the 2021/22 financial year – i.e. from January to March – the beauty group’s sales were 719 million euros, 30.7 percent above the previous year’s level. Concerns about high inflation and the war in Ukraine have so far not dampened the willingness to spend more on one’s own beauty, said Müller. Douglas did not notice any reluctance to buy or customers switching to cheaper products in the second quarter. The catch-up effect after the Corona period and the joy of social contacts have apparently so far overlaid the effects of the current crises.
According to the company, the price increases at Douglas itself are still within the “normal range” due to the long-term contracts with the suppliers. But the perfumery chain also feels the manufacturers’ delivery problems here and there. Because there is a lack of pumps for perfumes or glass jars, products are not available more often than usual.
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The Douglas stores in particular experienced a comeback in the first quarter, increasing their sales by 81 percent compared to the same quarter of the previous year, which was heavily influenced by the lockdown. Online sales, on the other hand, fell by 14 percent. “Now that the lockdowns have ended, we are seeing how the sales ratios between online and branch business are beginning to level off again,” said Müller. But e-commerce sales in the second quarter were twice as high as before the pandemic.
The consolidated operating result (adjusted Ebitda) increased by 16.5 million euros to 25 million euros. The bottom line is that Douglas had to report a loss of 102 million euros, not least because of the restructuring costs for the Spanish business.
Douglas expects growth impetus from the takeover of the Dutch online pharmacy Disapo. The subsidiary has been offering pharmacy cosmetics and over-the-counter products in the Douglas online shop since April. In addition, Douglas secured Europe-wide exclusive rights for the perfume of the US musician Billie Eilish and is hoping for good business with it. The demand for celebrity products is great, said Müller.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
