DOUGLAS Group 2025/2026 – stable performance despite challenging market environment in the first quarter. The DOUGLAS Group posted stable sales growth in the first quarter of 2025/26 despite a volatile market environment characterised by increased price sensitivity and geopolitical uncertainties. Growth in e-commerce and Central Eastern Europe stands out particularly positively, while profitability is being weighed down by margin pressure and investments. Strategic measures such as product range exclusivity, expansion of the store network and harmonisation of the IT infrastructure are intended to ensure further growth and efficiency gains.
Focus on economic environment and sales performance
In the period from October to December 2025, the DOUGLAS Group increased its sales by 1.7%, thereby maintaining its strong market position in the European premium beauty segment. However, the market environment was characterised by high volatility due to macroeconomic and geopolitical uncertainties, which changed consumer purchasing behaviour. More selective purchasing behaviour and a greater focus on price promotions led to a decline in gross margin and a decrease in adjusted EBITDA margin to 19.9% (previous year: 21.5%).
Differentiated development in markets and sales channels
Sales development showed significant differences between regions and sales channels. Central Eastern Europe recorded strong growth of 7.3%, while the higher-revenue markets of Germany and France achieved only moderate growth of 0.6% and 1.2% respectively. Store sales grew slightly by 0.4% (like-for-like: -2.8%), while e-commerce continued to show momentum with an increase of 4.2%. Cross-channel offerings such as Click & Collect Express were particularly successful, growing at double-digit rates and underscoring the appeal of the omnichannel model.
Strategic focus on digitalisation and profitability
The DOUGLAS Group is consistently focusing on expanding its digital presence and optimising its online business with a clear focus on profitability. The partner programme has been significantly expanded and is contributing to the expansion of the product range, while the retail media business achieved double-digit increases in sales and earnings. The DOUGLAS app plays a central role in the customer journey, with over a third of digital purchases being made via this platform.
Margin pressure and financial stability despite investments
Increased price sensitivity among customers led to intensified advertising activities, which weighed on the gross margin and limited profitability. Despite a 5.6% decline in adjusted EBITDA to €333.7 million and a slight increase in net debt, free cash flow remains robust at €464.4 million. Investments in store openings, modernisation and IT infrastructure are part of the long-term growth strategy.
Significance of shopping events and early Christmas shopping
Shopping events such as Black Friday and Singles’ Day generated high demand and increased web traffic to 3.5 times that of an average Friday. Peak values of up to 25,000 orders per hour testify to the strong market presence.However, the shift in Christmas shopping led to a slowdown in December business.
Expansion of the exclusive product range and store network
The DOUGLAS Group is strengthening its position as a leading provider in the premium beauty retail sector by systematically expanding its exclusive product range. In the 2025/26 financial year, the make-up brand about-face and the fragrance brand Orebella were launched, among others, to complement the exclusive portfolio. In addition, the store network was expanded by a net total of 13 new locations and 22 stores were modernised. Flagship stores in busy shopping streets, such as Cologne’s Schildergasse, are providing additional impetus.
IT harmonisation as the basis for efficiency
The Group-wide harmonisation of the IT landscape is a key transformation project for the DOUGLAS Group. Twelve rollouts and the connection of four omnichannel warehouses have already been implemented. Ten of the 22 countries are now working on the complete Group tech stack, with more to follow in the coming years. The harmonisation of processes such as payment is intended to reduce costs and improve credit card acceptance.
Outlook and unchanged annual forecast
For the 2025/26 financial year, the DOUGLAS Group continues to expect sales of between EUR 4.65 and 4.80 billion and an adjusted EBITDA margin of around 16.5%. The debt ratio is expected to be between 2.5x and 3.0x. The Annual General Meeting will again be held virtually on 26 February 2026.
[Text: epcnews/Image: Douglas]