The business of the largest German perfume chain is not yet suffering from high inflation and the war in Ukraine. Customers are more than happy to finally be able to celebrate again.
The largest German perfume chain, Douglas, is reaping the benefits of the burgeoning party mood in Europe after most of Corona’s requirements have been completed. “You could say the parties are back,” said Douglas CEO Tina Müller.
In the second quarter of the 2021/22 fiscal year – i.e. from January to March – the sales of the cosmetics group amounted to EUR 719 million, i.e. 30.7 percent. more than last year. Concerns about high inflation and the war in Ukraine have not dampened the willingness to spend more money on their own beauty so far, Müller said. Douglas did not notice reluctance to buy or switching customers to cheaper products in the second quarter. The post-Crown catching-up effect and the joy of socializing apparently have so far overlapped with the effects of the current crises.
According to the company, the price increases in Douglas itself are still in the “normal range” due to long-term supplier contracts. But the perfume chain is also experiencing supply problems for manufacturers here and there. As perfume pumps and glass jars are missing, the products are not available more often than usual.
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Douglas stores in particular saw a return in the first quarter, with sales up 81 percent from the prior-year quarter, largely influenced by the lockdown. In turn, online sales fell by 14 percent. “With the blockades over, we are now seeing the sales rates between the internet and industry businesses begin to equalize again,” said Müller. However, e-commerce sales were twice as high in the second quarter as before the pandemic.
The consolidated operating result (adjusted EBITDA) increased by EUR 16.5 million to EUR 25 million. The bottom line is that Douglas had to report a loss of € 102 million, not least because of the costs of restructuring Spanish business.
Douglas expects the takeover of the Dutch online pharmacy Disapo to spur growth. Since April, the subsidiary has been offering pharmacy cosmetics and over-the-counter products in the Douglas online store. In addition, Douglas has secured himself exclusive rights throughout Europe to the perfume of the American musician Billie Eilish and hopes to get a good deal with them. The demand for celebrity products is huge, said Müller. (dpa)