The online retailer windeln.de is still going through difficult times. In the first quarter of 2018, sales fell to 32.8 million euros. In the course of the change of CEO to Matthias Peuckert, windeln.de carried out organizational changes and closed down the Italian web shop. CFO Dr. Nikolaus Weinberger expects positive effects in the second half of the year.

This a decrease of 29.5 percent compared to the same period last year. The company names the temporarily low demand in China and its own efficiency measures as reasons. The Luna Journal had already reported on this package of measures. In the course of the change of CEO to Matthias Peuckert, windeln.de made organizational changes and closed the Italian web shop.

Business in China accounts for over 50 percent of windeln.de sales

A look at the figures shows: China accounts for the largest share of Group sales, an impressive 53 percent. However, at 17.5 million euro, windeln.de’s sales in China in the first quarter were 26.1 percent lower than in the same period last year. The company sees lower demand and a temporary oversupply after Chinese New Year as the main reasons. Despite everything, China remains a highly attractive market. Windeln.de wants to expand its product range and establish additional sales channels. Since April the products are also available on eurgo.com. This is an e-commerce marketplace where Chinese customers can buy products from European companies.

Italian webshop pannolini closed

Windeln.de generated around 25 percent of its sales in Europe outside the DACH region, especially in Spain, Portugal and France. At 8.1 Million euros, this was around 15.9 percent less in the first quarter than in the same period last year. This does not include the sales of the Feedo Group which is still in the process of being sold. The closure of the Italian webshop pannolini at the beginning of February contributed to the decline in sales. It is a component of the measures introduced at windeln.de. The company aims to increase the profitability of its Southern European business by optimizing its product range and streamlining its organization.

Sharp drop in sales in the DACH region

Especially business in the DACH region suffers. Here, the company’s sales in the first quarter were around 45 percent lower than in the same period of the previous year. Sales revenues of 7.3 million euros represent a 22 percent share of total Group sales. According to windeln.de, the optimization of the product range has an impact on sales from a profitability perspective, lower marketing costs and organizational streamlining in sales. Dr. Nikolaus Weinberger, CFO of windeln.de SE: “The past quarter, as well as the entire 2018 financial year, is all about restructuring which we are implementing together with Matthias Peuckert as the new CEO. The decline in sales is related to the focus on improving earnings. Since our announcement in February, we have implemented many measures. However, we do not expect the measures to take full effect until the second half of the current financial year.”

 

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Link: www.windeln.de

Image: windeln.de

//KH