The DOUGLAS Group, Europe's largest premium beauty retailer, reported preliminary second-quarter results showing sales growth but declining profitability, reflecting what CEO Sander van der Laan described as a market that has undergone a fundamental shift and is now stabilizing at a new level. For the period from January 1 to March 31, 2026, group sales increased 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% a year earlier. Adjusted EBIT fell to €19.1 million from €32.4 million.
The company attributed the margin pressure to slower growth rates in mature premium beauty markets, shifting shopping behavior, and increased focus on pricing and promotion amid customer uncertainty. Geopolitical and macroeconomic uncertainty continues to weigh on consumer sentiment in the euro area, the company said.
In addition to operational headwinds, the net loss for the quarter is expected to be in the high-double-digit to low-triple-digit million euro range, primarily due to impairments on goodwill related to its French business NOCIBE and Parfumdreams/Niche Beauty, totaling a mid- to high-double-digit million euro figure, plus further asset impairments in the low-double-digit million euro range.
Reflecting these challenges, the DOUGLAS Group has adjusted its full-year guidance for fiscal 2025/26. The company now expects sales at the lower end of the previously communicated range of €4.65–€4.80 billion, and an adjusted EBITDA margin of around 16.0%, down from the previous target of around 16.5%. Net leverage is expected at the upper end of the 2.5x–3.0x range as of September 30, 2026.
CEO Sander van der Laan emphasized that the company's strategic focus remains on omnichannel, differentiation, and profitable growth. “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 said. “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 to excel in the execution of our initiatives.”
The DOUGLAS Group, which operates approximately 1,970 stores across Europe under brands including DOUGLAS, NOCIBE, Parfumdreams, and Niche Beauty, is the number one omnichannel premium beauty destination in Europe. The company is listed on the Frankfurt Stock Exchange. Further details on the quarter will be published on May 12, 2026. For more information, visit the DOUGLAS Group Website.
