THE WHAT? German retailer Douglas has been setting the groundwork for a future IPO through strong online sales growth, however, the decision is said to lie with owners CVC Capital, according to a report by Reuters.
THE DETAILS Majority owned by the private equity group, a public offering could follow a strong sales rise of 5.4 percent in the 2018/19 fiscal year to 17 million euros. A third of the company turnover is now made online in Germany.
Tina Mueller, CEO, told Reuters in an interview, “We have brought this company to excellent growth and want to get even more profitable. The foundation is laid. A public offering is a decision for CVC.”
THE WHY? Looking to become ‘more profitable’, an IPO would no doubt help finance company expansion plans into clothing – a move which would follow the recent diversification into jewellery and handbags.