Shares in Fielmann AG fell Monday after it said earnings in the second quarter were hit by the war in Ukraine and the continuing pandemic, and warned of a pessimistic outlook for the full year.
Shares at 1245 GMT were down 10.5% to EUR41.72.
The German eyewear company said earnings before taxes in the three months to the end of June was 39 million euros ($40.7 million), down from EUR54.2 million in the same period last year.
Sales, however, increased to around EUR437 million from EUR407.7 million.
Additional personnel expenses for the first half of the year were around EUR22 million, as it increased salaries in several markets to counteract the lack of skilled personnel, Fielmann said.
Although sales growth was in line with its strategy, Fielmann’s cost structure for 2022 had been planned for “more dynamic growth,” the Hamburg-based company said.
Fielmann added that it “views the current market environment with concern.”
“The ongoing war in Ukraine, persistently high inflation levels and rising interest rates all negatively affect consumer confidence while driving cost inflation,” it said
The company is now guiding for full-year earnings before taxes of EUR190 million, from EUR209.7 million in the previous year.
It said it expects the full year to correspond with the “pessimistic” scenario in its annual report.
The pessimistic scenario predicted a 4% full-year sales increase, while its optimistic outlook expected sales to increase by around 10%.
Fielmann said it would update on its strategy and short- and medium-term growth at its annual general meeting on July 14.