The DOUGLAS Group, Europe's number one premium beauty retailer, reported preliminary second-quarter sales growth of 1.1% to 949.7 million euros for the period ending March 31, 2026, compared to 939.0 million euros in the prior year. However, adjusted EBITDA declined by 5.1% to 116.1 million euros, resulting in a margin of 12.2%, down from 13.0% a year earlier. Adjusted EBIT fell to 19.1 million euros from 32.4 million euros.
The company attributed the profitability decline to slower growth rates in mature premium beauty markets, a heightened focus on pricing and promotions, and ongoing uncertainty among consumers in the euro area. CEO Sander van der Laan noted that the market 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 said.
The net loss for the second quarter is expected to be in the high-double-digit to low-triple-digit million euro range, 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 figure, 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 its full-year guidance for the 2025/26 financial year. The company now expects sales at the lower end of the previously communicated range of 4.65 to 4.80 billion euros. The adjusted EBITDA margin is forecast to be around 16.0%, down from the earlier estimate of approximately 16.5%. Net leverage is expected to be at the upper end of the 2.5x to 3.0x range as of September 30, 2026.
The DOUGLAS Group is sharpening its strategic focus on omnichannel operations, differentiation in services and product offerings, and a future-ready infrastructure. Van der Laan emphasized that the omnichannel model is a structural advantage in the current environment. "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," he said. The company views these measures as deliberate investments in sustainable, profitable growth rather than short-term reactions.
The full financial results for the second quarter will be published on May 12, 2026. For more information about the DOUGLAS Group's strategy and performance, visit the DOUGLAS Group Website.
