Annual Report 2009/10 Excellence in Retailing - Douglas Holding

The operating earnings in the Books division climbed by 2.3 million EUR to 25.1 million
EUR. The EBT margin of 2.8 percent was in line with the prior year. Excluding the oneoff
income amount arising from the revaluation of the buch.de shares totaling 6.1 million
EUR, the earnings decreased to 19.0 million EUR. Alongside the generally weak market
development in the book retailing sector, the reporting period was also impacted by special
effects from the introduction of a new merchandise management system.
The Jewelry division posted a higher EBT from 15.1 million EUR in the preceding year
to 17.4 million EUR in the year under review. The EBT margin improved to 5.6 percent after
5.2 percent a year earlier. This positive development arose from the very solid sales performance
in comparison to the sector and to the further expansion of the exclusive and
private labels, which also further improved Christ’s gross profit margin.
The Fashion division’s earnings before closing costs for the Berlin store resulted in a
balanced outcome just like in the previous year. Despite the slight sales decline, pre-tax
earnings stabilized as a consequence of consistent cost management. In terms of costs,
the restructuring has been completed. Therefore, the focus is now on communicating the
new direction with the aim of attaining a sustainable sales increase.
The EBT of the Confectionery division of 2.8 million EUR just missed the prior year’s
figure by 0.5 million EUR (before costs for the store network streamlining). Correspondingly,
the EBT margin dropped from 3.3 percent in the prior year to 2.8 percent in the reporting
period.
The marginal earnings decrease in the Services division arose from a lower net interest
result. This was caused in particular by lower interest income from loans granted to
subsidiaries.
The DOUGLAS Group’s cost structure (excluding the prior year’s costs for the store network
streamlining) in the year under review did not materially change compared to the
prior year. The personnel costs rose disproportionately to sales. Accordingly, the personnel
cost ratio slightly decreased to 21.7 percent. The rental and energy costs rose in proportion
to sales. In addition to scheduled depreciation, which was in line with the prior year’s
level, extraordinary write-downs were higher by 6.2 million EUR.
Fig. 5 · EBT and EBT margins
EBT
(in EUR m)
Change
(in %)
EBT margin
(in %)
2009/10 2008/09 2009/10 2008/09
Perfumeries 87.9 87.7 0.2 4.7 4.7
Books 25.1 22.8 10.0 2.8 2.8
Jewelry 17.4 15.1 15.2 5.6 5.2
Fashion 0.1 0.0 − 0.1 0.0
Confectionery 2.8 3.3 −15.2 2.8 3.3
Services −2.1 −1.3 −60.7 − −
DOUGLAS Group
before closing costs
131.2 127.6 2.8 4.0 4.0
Closing costs 0.0 −23.7
DOUGLAS Group 131.2 103.9 26.3 4.0 3.2
Management Report
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
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