Otto Group Pivots to Black Friday, Buys Back Hermes Germany Stake
Otto Group has revealed significant strategic shifts, with the Black Friday period now outshining Christmas as the most vital shopping season. The company has also shared plans to repurchase the remaining stake in Hermes Germany and implement its own turnaround strategy.
Hermes Germany, a parcel delivery service, has been a substantial financial burden for Otto Group, posting a net loss of 231 million euros in recent times. Nevertheless, Otto Group views Hermes Germany as strategically vital and is committed to its restructuring. The company has no intentions to divest Hermes Germany and instead aims to fully reintegrate it into its operations.
Otto Group's focus on profitability is fueled by its desire to finance investments following recent challenges. Black Friday has emerged as the year's most significant event, with Artificial Intelligence (AI) playing a pivotal role in maintaining profitability through dynamic pricing on its platforms.
Otto Group's acquisition of the remaining 25 percent stake in Hermes Germany underscores its long-term dedication to the company. Despite recent financial setbacks, Otto Group anticipates a pre-tax profit in the high three-digit million range for the current fiscal year, reflecting its confidence in its strategic direction.
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