Douglas - comment

Douglas reported results that were mildly below our expectations, but overall very much in line. Management have stated that German footfall has improved “a lot” since the Q2 numbers reported today. At the same time the company has given a first glimpse of the size and shape of its enlarged restructuring program in Spain. Inflation has not yet made an impact - neither on COGS, nor on expenses and effects remain to be seen. The market is bearish on consumer discretionary spending and Douglas bonds are feeling it.