• Sales increase by 17 percent to 3.3 billion euros in fiscal year 2017/18
• Double-digit growth in e-commerce
• Reorganization delivers initial promising results
• German business returns to growth in final quarter
• CEO  Tina  Müller:  “We  have  created  the  foundations  for  sustainable,  profitable growth.”

 

Düsseldorf,  11  December  2018.  Douglas,  Europe’s  leading  premium  beauty  retailer, has  expanded  its  market  position  in  Europe  across  all  channels.  Acquisitions  caused Group sales to increase by 17 percent to 3.3 billion euros in fiscal year 2017/18 (ending 30 September). In organic terms, sales were stable. Despite significant expenditure on growth,  adjusted  EBITDA  climbed  as  well,  increasing  6  percent  year  on  year  to 376 million  euros.  In  Germany  –  Douglas’  home  market  –  in-store  business  initially declined  slightly,  though  the  market  share  remained  stable.  After  a  longer  period  of weak sales in Germany, Douglas reversed its business trend in the fourth quarter with a return to positive growth. In all regions outside Germany, Douglas continued to grow its sales and earnings in the last fiscal year.

As Tina Müller, CEO of Douglas, commented: “Last year was one of reorganization. We left no stone – or bit – unturned and made significant investments in our business across all five pillars of our #FORWARDBEAUTY strategy. The initial results are promising and the   reorganization   initiative   is   gaining   traction.   In   short,   we   have   created   the foundations for sustainable, profitable growth.”

 

New logo and visual language rejuvenate the brand

In  the  fiscal  year  just  passed,  Douglas  achieved  initial  tangible  results  across  all  five pillars of its #FORWARDBEAUTY strategy. The modernisation and upgrade of the brand took  a  big  step  forward  with  the  launch  of  a  new  logo  and  visuals  as  well  as  the

#doitforyou and “real-love-starts-with-yourself” campaigns.

 

E-commerce – setting a new digital benchmark

Douglas’  performance  in  the  e-commerce  segment  was  particularly  gratifying.  Digital sales increased  by  11  percent  to 423  million  euros,  making Douglas  Europe’s  largest online retailer in its field, generating four times as much digital sales as its next largest competitor in Germany for example. This double-digit increase was due mainly to the growth of the company’s online shop and to the launch of a cutting-edge app that sets a  new  benchmark  in  technology  and  user  experience.  Douglas  has  been  making greater use of artificial intelligence (AI) in the e-commerce segment. For example, data- driven programs such as price optimisation software from Revionics make it possible to adjust prices in real time.

In parallel, Douglas has further expanded its in-house team of digital experts and can now boast one of Europe’s biggest such teams in the beauty retail field. What is more, the    company    has    enhanced    its    digital    expertise    through    the    acquisition    of parfumdreams, an online retailer.

 

Redesigned stores attract more customers and boost sales

Last  fiscal  year,  Douglas  also  spent  substantial  amounts  of  capital  to  modernise  its bricks-and-mortar  stores  and  rolled  out  its  new  visual  language  in  all  stores  across Europe. The company’s new logo will arrive in all of its stores before the end of 2019. With   a   fresh   design,   innovative   formats,   exclusive   events   and   a   clear   focus   on consultation and services, Douglas will transform its stores into places where customers enjoy a new shopping experience with additional services and consultation. Fifty stores across Europe have already been completely refurbished and upgraded. This is having a tangible positive impact, with Douglas recording both higher customer numbers and increased sales. Douglas has also launched innovative premium offerings, re-opening its flagship store in Frankfurt’s main shopping street Zeil as well as a Douglas PRO store in  Hamburg.  Since  opening  its  doors  to  the  public  in  September,  the  PRO  store  in Hamburg  has  counted  more  than  20,000  visitors,  and  the  average  basket  there  is 10 percent higher than in other stores.

 

Assortment expanded to include more than 150 new high-growth brands

Douglas has also made significant changes to its assortment in an effort to distinguish itself more clearly from its competitors. This year, the company added more than 150 new  brands  to  its  portfolio.  Making  sound  choices  when  scouting  for  trends  is  a decisive factor in setting the company apart from competition. For example, four of the top 30 skincare products were introduced only in the last twelve months. In addition to selling trending, high-growth brands, Douglas is also banking on high-margin brands, whether owned brands or exclusive brands. In the medium term, the share of total sales accounted  for  by  exclusive  and  owned  brands  is  to  rise  from  its  current  level  of 17 percent to around 30 percent.

 

Number of Beauty Card holders reaches 39 million

Thanks to more intensive marketing, we succeeded in raising the number of members in  our  customer  loyalty  programme,  the  Douglas  Beauty  Card,  to  39  million  Europe- wide  (versus  27  million  a  year  earlier).  Purchases  by  Beauty  Card  holders  already account  for  over  two-thirds  of  Douglas’  total  sales.  The  data  collected  via  the  Beauty Card      enables      targeted      micromarketing,      including      personalised      product recommendations  and  invitations  to  exclusive  events.  Here,  too,  Douglas  is  making increasing use of AI-based processes to address the individual needs of its customers in a targeted manner. The results speak for themselves: in addition to a higher conversion rate,  the  average  basket  of  an  actively  addressed  card  holder  was  already  about  20 percent higher at the end of the fiscal year compared with the group of card holders not actively addressed.

 

Germany business back in growth mode in Q4

In  implementing  its  #FORWARDBEAUTY  strategy,  Douglas  has  thus  far  focused  on Germany, its all-important home market, and also renewed its local market personnel. New  managers  were  appointed  in  key  areas  such  as  e-commerce,  pricing  and  sales, bringing   with   them   fresh   ideas   and   great   experience.   This   reorientation   –   in combination with more pricing discipline (discounts were cut substantially) – reversed the trend in the German market, with Douglas posting slight growth in the final quarter of the fiscal year (up 0.6 percent like-for like).

 

A new year promises a new start

“Anyone in Europe thinking beauty, should think of Douglas first. That’s our goal, and we are getting a step closer to it every day,” said Tina Müller. “After all our hard work in the last year, fiscal 2018/19 promises to offer us a new start. Many of the measures we have put in place are beginning to bear fruit. As the leading omnichannel retailer, we already  occupy  a  strong  position  in  the  European  market,  and  we  intend  to  build  on that.”

 

ABOUT  DOUGLAS:

Douglas is one of the leading retailers in the European beauty industry with about 2,400 stores and  fast-growing  online  shops  in  21  European  countries.  In  the  financial  year  2017/18,  the company  generated  sales  of  3.3  billion  euros.  Every  day,  around  20,000  dedicated  beauty advisors strive to make their customers more beautiful and thus happier. Douglas has a portfolio of  some  38,000  high-quality  products  in  the  areas  of  perfumery,  decorative  cosmetics  and skincare. Providing excellent consultation and a range of unique services, Douglas is one of the leading companies in the beauty market – both online and in stores.

#doitforyou

 

PRESS  CONTACT:

Dr. Julia Sosnizka

Head of Corporate Communications

Phone: +49 (0) 211 16847–585

E-mail: j.sosnizka@douglas.de