Annual Report 2009/10 Excellence in Retailing - Douglas Holding

In the fiscal year, Douglas opened a total of 48 new stores, mostly in Poland, Bulgaria
and Italy. The number of perfumeries slightly declined to 1,205 as of the balance sheet
date due to the store network streamlining program conducted during the reporting year.
Since countries outside of Germany were impacted the most from this program, the share
of foreign subsidiaries in Group perfumery sales slightly decreased to 49.6 percent.
The Books division increased sales in the 289 Thalia bookstores in Germany, Austria
and Switzerland by 10.5 percent to 905.8 million EUR. In spite of the slightly lower store
network number, Thalia further expanded its leading market position in German-speaking
countries. Like-for-like sales increased by 1.2 percent. Equivalent shares in sales were
contributed by both domestic and foreign subsidiaries. The pleasing performance given in
Austria is again emphasized here. Like-for-like sales of the 33 Thalia bookstores climbed
by 5.1 percent irrespective of the very solid prior year’s figure. The performance of the 24
Thalia bookstores in Switzerland rose by 1.8 percent.
If the sales from buch.de would be fully accounted for in the prior and current years
for the Thalia bookstores, a sales gain of 2.9 percent would arise (Germany: 2.3 percent;
abroad: 5.0 percent). Excluding buch.de, a slight decrease of 1.6 percent in like-for-like
sales would arise (Germany: –2.2 percent; foreign: 0.5 percent).
In the Jewelry division, the 204 Christ jewelry stores reported a sales gain of 6.1
percent to 310.2 million EUR during the fiscal year under review. Like-for-like sales surpassed
the prior year’s high figure by 6.0 percent. This was realized primarily from the
successful implementation of the exclusive and private label strategy. Therefore, Christ
once again outshined the overall stagnating market performance, securing its strong
market position in the mid to upper price range in Germany. The number of Christ stores
increased by only one store; however, numerous older stores were completely modernized
and expanded.
Sales in the Fashion division stood at 124.1 million EUR, 5.3 percent behind the previous
year. Adjusted for the store closed in Berlin in January 2009, the like-for-like sales
decline is only 1.2 percent. The fashion stores in Bonn and Münster reopened their doors
in September 2010 following extensive modernization work. In line with the restructuring
program, the 14 AppelrathCüpper fashion stores focus on the mid to upper genre for
women’s fashion clothing with excellent expertise.
In the Confectionery division, Hussel further expanded its leading market position
in Germany. The 261 Hussel confectionery shops in Germany and Austria generated sales
of 99.4 million EUR, falling just short of the prior year’s level (–1.6 percent). Like-for-like
sales for German shops were down 0.8 percent, while the Austrian Hussel shops reported
a drop of 2.7 percent. Following the closure of unprofitable shops, the store network number
decreased as planned by 13 confectionery shops.
Additional information about strategy and figures of the individual business divisions
can be found on pages 71 to 109 of this Annual Report and in the Notes accompanying the
consolidated financial statements.
Earnings target slightly surpassed
Earnings before taxes (EBT) came in at 131.2 million EUR after 103.9 million EUR a year
earlier. Therefore, the earnings target of nearly 130 million EUR was slightly exceeded.
Management Report 37
Key results
Business activities and operating environment
Net assets, financial position and result of operations
DOUGLAS HOLDING AG
Subsequent events
Control system and success factors
Opportunities and risks situation
Statutory disclosures
Forecast and overall assessment
71–109