The DOUGLAS Group, Europe’s number one premium beauty retailer, reported preliminary second-quarter sales growth but faced profitability pressures, leading the company to update its full-year guidance for adjusted EBITDA margin. 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 quarter. 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 fell to 19.1 million euros from 32.4 million euros.
The company attributed the weaker profitability to slower growth in mature markets, increased focus on pricing and promotion, and ongoing uncertainty among customers in the euro area. CEO Sander van der Laan noted that the market has undergone a fundamental shift and is 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,” he said. 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 mid- to high-double-digit million euro impairments on goodwill related to NOCIBE and Parfumdreams/Niche Beauty, along with further low-double-digit million euro asset impairments.
Reflecting the changed market conditions, the Management Board adjusted its full-year guidance for the 2025/26 financial year. The company now expects sales at the lower end of the previously communicated range of 4.65 to 4.80 billion euros. The adjusted EBITDA margin is forecast to be around 16.0%, down from the earlier expectation of approximately 16.5%. Net leverage is anticipated to be at the upper end of the 2.5x to 3.0x range as of September 30, 2026.
To navigate the current environment, the DOUGLAS Group is sharpening its strategic focus on omnichannel differentiation, product and service differentiation, and profitable growth. The company emphasized that its omnichannel model is a structural advantage in the “new normal.” Van der Laan stated, “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. These measures are not short-term reactions to the challenging environment: They are deliberate investments in the foundation on which we will deliver sustainable, profitable growth.”
The DOUGLAS Group, listed on the Frankfurt Stock Exchange, operates around 1,970 stores across Europe under the brands DOUGLAS, NOCIBE, Parfumdreams, and Niche Beauty. The full set of financial figures for the second quarter will be published on May 12, 2026. For more information, visit the DOUGLAS Group Website.
