DOUGLAS Group in the second quarter of 2025/26 – Setting the strategic course for sustainable growth in the premium beauty market. The DOUGLAS Group saw a slight increase in revenue in the second quarter of 2025/26, but is facing a net loss due to impairment charges and a challenging market environment. The company is increasingly focusing on omnichannel strategies, exclusive brands and the expansion of digital services to position itself for the long term in the European premium beauty retail sector.
Sales performance and market environment in the second quarter of 2025/26
In the period from January to March 2026, the DOUGLAS Group increased its sales by 1.1 per cent to €949.7 million. The performance varied across regions: whilst Central and Eastern Europe recorded growth of +5.9 per cent and the DACHNL segment of +1.4 per cent, sales in Southern Europe, France and the Parfumdreams / Niche Beauty online segment declined slightly. Consumer sentiment in the eurozone is being weighed down by geopolitical uncertainties, inflation and rising energy costs, leading to more selective spending behaviour.
Operating results and financial challenges
Adjusted EBITDA fell by 5.1 per cent to €116.1 million, corresponding to a margin of 12.2 per cent. Adjusted EBIT amounted to €19.1 million. A net loss of €124.6 million had a particularly negative impact, primarily attributable to goodwill impairments in the French business (NOCIBÉ) and at Parfumdreams. Despite these headwinds, free cash flow improved slightly and net financial liabilities were reduced.
Focus on omnichannel and digital innovations
The DOUGLAS Group is increasingly focusing on its omnichannel model, which combines the store network, online shops, mobile apps and digital services. Cross-channel offerings such as Click & Collect Express grew by almost 30 per cent in the second quarter and already account for around five per cent of revenue. The Beauty Card, one of Europe’s leading loyalty programmes, has over 64 million members following its relaunch and generates around 80 per cent of sales through loyal customers. In May 2026, an AI Beauty Advisor chatbot was launched in Germany, designed to enhance the digital shopping experience and boost the conversion rate.
Product range and differentiation as growth drivers
A key driver for future growth is the consistent differentiation of the product range. Exclusive brands already account for over two-thirds of revenue growth and generate higher margins. In 2026, the make-up brand “about-face” by Halsey, the perfume brand “Orebella” by Bella Hadid and the hair care brand “Lolavie” by Jennifer Aniston were launched, among others. Exclusive and own brands accounted for almost 15 per cent of total sales in the second quarter.
Store network and investment strategy
As at 31 March 2026, the DOUGLAS Group operated 1,970 stores, of which eleven were newly opened and twelve closed in the second quarter. To strengthen the omnichannel strategy, the pace of new store openings in existing markets is being reduced, whilst investment is increasingly flowing into the online channel and technology. In addition, the company plans to position Parfumdreams as a purely online provider and will close ten of the 18 Parfümerie Akzente stores in Germany by the end of June 2026.
Outlook and forecast for the 2025/26 financial year
The DOUGLAS Group has adjusted its forecast for the 2025/26 financial year and expects revenue at the lower end of the range of €4.65 to €4.80 billion. The adjusted EBITDA margin is expected to be around 16.0 per cent, whilst the net debt ratio as at 30 September 2026 will be at the upper end of the range of 2.5x to 3.0x. The company is focusing on sustainable growth through efficiency improvements, technological innovations and a differentiated product range.
[Text: epcnews/Photo: Douglas]
