DOUGLAS Group Lowers Profit Guidance Amid Market Slowdown and Consumer Uncertainty
DOUGLAS Group reports Q2 sales growth of 1.1% but a 5.1% drop in adjusted EBITDA, leading to a reduced full-year margin forecast as mature markets and weak consumer sentiment weigh on profitability.
The DOUGLAS Group, Europe’s leading premium beauty retailer, announced preliminary second-quarter results showing continued sales growth but declining profitability, prompting a downward revision of its full-year adjusted EBITDA margin guidance. The company cited slower growth in mature markets, shifting shopping behavior, and increased promotional activity amid customer uncertainty as key factors.
For the quarter ended March 31, 2026, group sales rose 1.1% to €949.7 million from €939.0 million a year earlier. However, adjusted EBITDA fell 5.1% to €116.1 million, with the margin contracting to 12.2% from 13.0%. Adjusted EBIT dropped to €19.1 million from €32.4 million. The net result for the quarter was a high-double-digit to low-triple-digit million euro loss, driven by mid- to high-double-digit impairments on goodwill related to NOCIBE and Parfumdreams/Niche Beauty, plus low-double-digit asset impairments.
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.” He emphasized the company’s focus on omnichannel, differentiation, and profitable growth.
Reflecting this environment, DOUGLAS Group adjusted its full-year guidance for fiscal 2025/26. Sales are now expected at the lower end of the €4.65–4.80 billion range. The adjusted EBITDA margin is forecast around 16.0%, down from the previous 16.5%. Net leverage is anticipated at the upper end of the 2.5x–3.0x range as of September 30, 2026.
The company is sharpening its strategic direction under the “Let it Bloom” plan, focusing on omnichannel services, product differentiation, and a future-ready infrastructure, alongside strict cost discipline. Van der Laan stressed that these measures are deliberate investments for sustainable, profitable growth, not short-term reactions.
The full financial results 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.