The Douglas perfumery chain says it is feeling ongoing uncertainty and greater price sensitivity among its customers. This has recently led to increasingly selective purchasing behavior and demand characterized by discount campaigns and has put a strain on business. The company announced this during the presentation of its business figures.
Consumers are “currently weighing their spending more closely,” said Douglas boss Sander van der Laan. “This intensifies competition and means that price promotions are becoming more important for all providers.” After the upswing in the period after the pandemic, the group is now feeling headwind in the European market.
“Geopolitical tensions, trade conflicts and rising living costs have triggered purchasing reluctance across markets,” says van der Laan. Germany, France and the Netherlands are particularly affected. This is slowing down market growth in Europe. Nevertheless, the business model remains profitable.
Less profit
The quarter from October to December, which is particularly important for Douglas because of the Christmas business, brought a moderate increase in sales despite the difficult environment: According to the company, sales in the three months rose to 1.67 billion euros – 1.7 percent more than in the same period last year. In the DACH region, which includes Germany, Douglas was only able to increase by 0.6 percent. Net profit fell by 11.2 percent to almost 145 million euros compared to the same period last year.
For the financial year that runs until the end of September, the group expects sales of between 4.65 and 4.8 billion euros. According to its own information, Douglas operates around 1,960 branches worldwide, including around 340 in Germany.
