The DOUGLAS Group, Europe's number one premium beauty retailer, reported preliminary second-quarter results showing sales growth but declining profitability, leading to an adjusted full-year guidance. For the quarter ending March 31, 2026, group sales increased by 1.1% to €949.7 million compared to €939.0 million in the prior year. However, adjusted EBITDA decreased by 5.1% to €116.1 million, resulting in a margin of 12.2%, down from 13.0% a year earlier. Adjusted EBIT fell to €19.1 million from €32.4 million.
The company attributed the performance to a fundamental shift in the premium beauty market. Growth rates in mature markets have normalized after the exceptional post-pandemic period, while geopolitical and macroeconomic uncertainty continues to weigh on consumer sentiment. This has led to increased focus on pricing and promotion among customers, further pressuring margins.
CEO Sander van der Laan commented: “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. In this environment, our focus for the short- and mid-term is clear: omnichannel, differentiation, and profitable growth.”
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 its French business NOCIBE and Parfumdreams/Niche Beauty, totaling a mid- to high-double-digit million euro figure, plus further asset impairments in the low-double-digit million euro range.
Reflecting these market conditions, the Management Board has adjusted its full-year guidance for fiscal 2025/26. The company now expects sales at the lower end of the previously communicated range of €4.65 to €4.80 billion. The adjusted EBITDA margin is forecast at around 16.0%, down from the earlier expectation of approximately 16.5%. Net leverage is anticipated at the upper end of the 2.5x to 3.0x range as of September 30, 2026.
In response to the challenging environment, DOUGLAS is sharpening its strategic focus on omnichannel, differentiation, and profitable growth. The company plans to drive differentiation in services and product offerings, leverage its leading omnichannel model, and strengthen its infrastructural backbone, alongside strict cost discipline. 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. 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 full financial report for the second quarter will be published on May 12, 2026. For more information, visit the DOUGLAS Group Website or view the original release on NewMediaWire.
