The DOUGLAS Group, Europe's leading omnichannel premium beauty destination, has adjusted its financial guidance for the 2025/26 fiscal year following weaker-than-expected business performance in the third quarter. The company cited ongoing macroeconomic uncertainties and heightened price sensitivity among consumers as key factors behind the revision.
The European premium beauty market is undergoing significant shifts, with customers increasingly delaying purchases in anticipation of promotions and favoring online channels over physical stores. E-commerce is growing faster than store sales and maintains solid profitability at the EBIT level, while like-for-like store sales have turned negative. Channel mix, category mix, and spending patterns vary across markets, though cross-channel services like Click-and-Collect are performing strongly.
In response, DOUGLAS Group is reallocating investments from its store network to its online business, investing in competitive pricing, strengthening differentiation and exclusivity, and accelerating digitalization. CEO Sander van der Laan stated, "Consumer behavior and market dynamics have changed significantly. In this challenging environment, we fully focus on our strategic priorities." He added that some measures will deliver short-term benefits, while others will take longer to materialize, emphasizing a sustainable medium- to long-term approach.
The revised guidance for fiscal year 2025/26 includes net sales growth of 0-1%, corresponding to a range of 4.58 to 4.63 billion euros, compared to the previous expectation of "at the lower end of 4.65 - 4.80 billion euros." Adjusted EBITDA margin is now forecast at around 15.0%, down from the earlier projection of approximately 16.0%. Net leverage is expected to be between 3.0x and 3.5x as of September 30, 2026, versus the previous outlook of "at the upper end of 2.5x to 3.0x."
Despite the challenging environment, the company remains confident in its strategic positioning. Van der Laan noted, "In the current market environment, both differentiation and pricing matter more than ever. Our omnichannel model, our curated premium assortment, an attractive pricing and our excellent brand name give us a clear competitive edge." The company's transformation in recent years into a true omnichannel retailer, along with its strong brand and partnerships with premium beauty suppliers, provides a head start and a healthy financial profile that offers flexibility to act.
Further details and an update on strategic measures are expected to be published at the DOUGLAS Group quarterly reporting on August 12, 2026. The company's stock is listed on the Frankfurt Stock Exchange. For more information, visit the DOUGLAS Group Website.
