Douglas's second-quarter performance was weak, with market headwinds dragging down profits

Investing.com – German beauty retail group Douglas Group (ETR:DOU) announced weak second-quarter results on Tuesday. During the reporting period, sales increased slightly by 1.1%, reaching €949.7 million; adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) declined by 5.1%, to €116.1 million, which is consistent with the company’s forecast released on April 30.

Douglas stated that physical store sales grew by 0.5%, while e-commerce sales (including cross-channel business) increased by 2.4%. The adjusted EBITDA margin was 12.2%, lower than 13.0% in the same period last year. Adjusted EBIT (earnings before interest and taxes) was €19.1 million, compared to €32.1 million in the same period last year.

The company pointed out that slowing growth in mature markets, intensified pricing and promotional activities, and low consumer confidence in the Eurozone are the main factors weighing on profitability.

Douglas reaffirmed its revised guidance issued in late April, expecting sales for the 2025/26 fiscal year to be at the lower end of the original target range of €4.65 billion to €4.8 billion. The adjusted EBITDA margin forecast was also lowered from approximately 16.5% to around 16.0%.

As of September 30, 2026, the company’s net leverage ratio is expected to be at the upper end of the 2.5x to 3.0x range.

In the second quarter, Douglas recorded a net loss of €124.6 million, mainly due to a €99 million goodwill impairment charge related to its French businesses NOCIBÉ and Parfumdreams, as well as an additional €14.5 million in asset impairment losses.

Adjusted net loss was €10 million, compared to an adjusted net loss of €12.2 million in the same period last year, representing a narrowing of the loss.

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