The DOUGLAS Group, Europe's leading premium beauty retailer, announced preliminary second-quarter results for fiscal 2025/26, showing sales growth but declining profitability amid challenging market conditions. Group sales increased by 1.1% to €949.7 million compared to €939.0 million in the same period last year. However, adjusted EBITDA fell by 5.1% to €116.1 million, resulting in a margin of 12.2%, down from 13.0% in the prior year. Adjusted EBIT also declined to €19.1 million from €32.4 million.
CEO Sander van der Laan attributed the performance to a fundamental shift in the premium beauty market, where growth rates in mature markets have normalized after the exceptional post-pandemic period. Geopolitical and macroeconomic uncertainty continues to weigh on consumer sentiment, leading to increased focus on pricing and promotion. "We operate in a market that has undergone a fundamental shift and is now stabilizing at a new level," van der Laan said. The company's net loss for the quarter reached a high-double-digit to low-triple-digit million euro figure, primarily due to impairments on goodwill at its French business NOCIBE and Parfumdreams/Niche Beauty, along with other asset impairments.
In response to these conditions, the Management Board adjusted its full-year guidance for 2025/26. The company now expects sales at the lower end of the range of €4.65-4.80 billion, an adjusted EBITDA margin of around 16.0% (down from the previous 16.5%), and net leverage at the upper end of the 2.5x-3.0x range as of September 30, 2026. The guidance reflects a cautious outlook as the company navigates a "new normal" in the premium beauty landscape.
To address the environment, DOUGLAS is sharpening its strategic focus on omnichannel differentiation, product and service innovation, and profitable growth. Van der Laan emphasized that the company's omnichannel model is a structural advantage and that investments in its "Let it Bloom" strategy are being accelerated. "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," he stated. The company plans to drive differentiation in services and product offerings, leverage its leading omnichannel model, and enforce strict cost discipline.
For more information, visit the DOUGLAS Group website at https://www.douglas-group.com. The full financial results for the second quarter will be published on May 12, 2026, as noted in the original release on https://www.newmediawire.com.
