Douglas – Revenue growth despite a challenging market environment – Forecast revised. Market developments and strategic adjustments by the DOUGLAS Group in the premium beauty segment for 2025/26. The DOUGLAS Group recorded a moderate increase in revenue in the second quarter of 2025/26, accompanied by a decline in profitability. Changing market conditions in the premium beauty sector, particularly in mature European markets, have led to an adjustment of the full-year forecast. The company’s strategy focuses on the further development of the omnichannel model, differentiation and sustainable, profitable growth.
Revenue growth despite a challenging market environment
In the second quarter of the 2025/26 financial year, the DOUGLAS Group increased its revenue to around €947.7 million, representing growth of 1.1% compared with the same period last year. However, this growth is moderate, as the premium beauty market in mature European markets is showing a slowdown in growth. Furthermore, changes in customer shopping behaviour, a greater focus on prices and promotions, and a weak consumer climate in the eurozone are affecting business performance.
Declining profitability – impairment charges weigh on earnings
Despite the rise in revenue, adjusted EBITDA fell by 5.1% to €116.1 million over the same period, corresponding to a margin of 12.2% (previous year: 13.0%). Adjusted EBIT fell to €19.1 million (previous year: €32.4 million). A key factor behind the negative net result in the second quarter is impairment charges on goodwill and assets, particularly relating to the French operations of NOCIBÉ, as well as Parfumdreams and Niche Beauty. These impairment charges are weighing on earnings to the tune of a high double-digit to low triple-digit million euro figure.
Updated full-year forecast slightly below previous expectations
In view of the current market situation and economic uncertainties, the DOUGLAS Group has adjusted its forecast for the 2025/26 financial year. Revenue is now expected to be at the lower end of the previous range of €4.65 to €4.80 billion. Adjusted EBITDA is estimated at around 16.0%, slightly below the previous expectation of 16.5%. In addition, a gearing ratio at the upper end of the range of 2.5 to 3.0 is forecast as at 30 September 2026.
Strategic focus on omnichannel and sustainable growth
The DOUGLAS Group is responding to the changed market conditions with a strategic realignment. At the heart of this is the omnichannel model, which is viewed as a structural competitive advantage. The corporate strategy “Let it Bloom – DOUGLAS 2026” focuses on differentiation through exclusive products and services, as well as the development of a future-proof infrastructure. These measures are accompanied by strict cost management. The investments are long-term in nature and aim for sustainable, profitable growth, not short-term reactions to the market environment.
Market development – increasing focus on pricing and promotions
Growth in the premium beauty segment is stabilising at a new, more moderate level. The focus on pricing and promotions is increasing, which requires adjustments in sales and marketing. At the same time, the integration of online and offline channels (omnichannel) is becoming increasingly important in order to meet customer expectations and secure competitive advantages. The strategic focus on differentiation and sustainable profitability provides guidance for the entire industry.
[Text: parfuemerienchrichten/Image: Douglas]
