The DOUGLAS Group, Europe’s number one premium beauty retailer, reported preliminary second-quarter sales growth but faced declining profitability, leading to a revised full-year outlook. For the period from January 1 to March 31, 2026, group sales increased by 1.1% to 949.7 million euros, compared to 939.0 million euros in the prior year. However, adjusted EBITDA decreased by 5.1% to 116.1 million euros, resulting in a margin of 12.2%, down from 13.0% a year earlier. Adjusted EBIT also fell to 19.1 million euros from 32.4 million euros.
The company attributed the margin pressure to slower growth in mature premium beauty markets, shifting shopping behavior, and increased focus on pricing and promotion amid customer uncertainty. CEO Sander van der Laan said, “We operate in a market that has undergone a fundamental shift and is now stabilizing at a new level. Growth rates in mature premium beauty markets have normalized compared to the exceptional post‑pandemic period, while geopolitical and macroeconomic uncertainty continues to weigh on consumer sentiment.”
The net loss for the quarter is expected to be in the high-double-digit to low-triple-digit million euro range, primarily due to impairments on goodwill related to the French business NOCIBE and Parfumdreams/Niche Beauty, totaling a mid- to high-double-digit million euro figure, along with further asset impairments.
Reflecting the changed environment, the Management Board adjusted its full-year guidance for fiscal 2025/26. The company now expects sales at the lower end of the 4.65-4.80 billion euro range, an adjusted EBITDA margin of around 16.0% (previously around 16.5%), and net leverage at the upper end of the 2.5x to 3.0x range as of September 30, 2026.
To navigate the challenges, the DOUGLAS Group is sharpening its strategic focus on omnichannel, differentiation, and profitable growth. Van der Laan emphasized, “Our omnichannel model is a structural advantage in this ‘new normal’. The strategic direction we took with ‘Let it Bloom’ already put us in a good position, and we are further narrowing down this path and accelerating our efforts to excel in the execution of our initiatives.”
The company will release its full second-quarter financial results on May 12, 2026. For more information, visit the DOUGLAS Group Website. The original press release is available on NewMediaWire.
