The DOUGLAS Group, Europe's number one premium beauty retailer, reported preliminary second-quarter results showing continued sales growth but declining profitability, reflecting a fundamental shift in the premium beauty market. For the period from January 1 to 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% in the same quarter last year. Adjusted EBIT fell to €19.1 million from €32.4 million.
The company attributed the margin pressure to slower growth in mature markets, increased focus on pricing and promotion, and weak consumer sentiment in the euro area due to geopolitical and macroeconomic uncertainty. CEO Sander van der Laan stated, "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." He emphasized the company's focus on omnichannel, differentiation, and profitable growth for the short and mid-term.
The net loss for the second quarter is expected to be a high-double-digit to low-triple-digit million euro figure, primarily driven by impairments on goodwill related to the French business NOCIBE and Parfumdreams/Niche Beauty, totaling a mid- to high-double-digit million euro amount, along with further asset impairments in the low-double-digit million euro range.
In response to the changing market conditions, the Management Board has adjusted the full-year guidance for the financial year 2025/26. The company now expects sales at the lower end of the previously communicated range of €4.65 billion to €4.80 billion, an adjusted EBITDA margin of around 16.0% (down from around 16.5%), and net leverage at the upper end of the 2.5x to 3.0x range as of September 30, 2026.
The DOUGLAS Group is sharpening its strategic direction, focusing on driving differentiation in services and product offering, leveraging its leading omnichannel model, and building a future-ready infrastructural backbone, all while maintaining strict cost discipline. Van der Laan noted, "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." He stressed that these measures are deliberate investments in the foundation for sustainable, profitable growth.
The full set of financial figures for the second quarter will be published on May 12, 2026. The DOUGLAS Group, with commercial brands including DOUGLAS, NOCIBE, Parfumdreams, and Niche Beauty, operates around 1,970 stores and is listed on the Frankfurt Stock Exchange. More information is available on the DOUGLAS Group Website.
