German retailer the Otto Group reported financial losses for the second year in a row on Wednesday, after a boom in profits during the Covid-19 pandemic.
The Hamburg-based group saw a loss of €426 million ($462 million) in the financial year 2023-24, following a loss of €413 million in the previous year and a profit of some €1.8 billion in 2021-22.
Total turnover fell by 6% to around €15 billion.
According to the company, the reason for the recent drop is the ongoing tense macroeconomic and geopolitical environment, the high level of interest rates and inflation as well as the sustained deterioration in consumer sentiment.
For the current 2024-25 financial year, Otto Group chief executive Alexander Birken is counting on stable revenue growth with a simultaneous significant increase in profitability.
"We want to achieve a significant improvement in the operating result in the 2024-25 financial year," said Birken. He expects earnings before interest and taxes (EBIT) to increase to a mid-triple-digit million figure at most.