The DOUGLAS Group announced a revision of its financial guidance for the 2025/26 fiscal year, citing weaker-than-expected third-quarter business performance and a significant shift in consumer confidence and spending patterns. The European premium beauty retailer now expects net sales growth of 0-1%, corresponding to a range of 4.58 to 4.63 billion euros, down from the previous forecast of "at the lower end of 4.65 - 4.80 billion euros." Adjusted EBITDA margin is projected at around 15.0%, compared to the earlier estimate of approximately 16.0%. Net leverage is anticipated to be between 3.0x and 3.5x as of September 30, 2026, versus the prior target of "at the upper end of 2.5x to 3.0x."
The company attributed the downgrade to ongoing macroeconomic uncertainties and price sensitivity among customers, which have led to delayed purchases and increased reliance on promotions. According to the DOUGLAS Group, the European premium beauty market continues to experience a shift, with e-commerce growing faster than stores and maintaining solid profitability at the EBIT level, while like-for-like store sales have turned negative. Cross-channel services such as Click-and-Collect are performing strongly, highlighting the importance of an omnichannel approach.
In response, the DOUGLAS Group outlined a strategic pivot focused on reallocating investments from physical stores to its online business, enhancing 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: we shift investments from our store to our online business; we are investing in competitive pricing, while further strengthening our differentiation and exclusivity; and we are continuing to drive digitalization forward." He emphasized that some measures will yield short-term benefits, while others will take longer to materialize, and that the company is guided by a sustainable medium- to long-term approach.
The DOUGLAS Group remains confident in its omnichannel business model, strong brand, and partnerships with premium beauty suppliers. The company noted that its transformation in recent years into a true omnichannel retailer provides a clear head start and a healthy financial profile that offers flexibility to act. Van der Laan added, "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 and we are executing on this with focus and discipline."
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, which operates approximately 1,970 stores across Europe under brands including DOUGLAS, NOCIBE, Parfumdreams, and Niche Beauty, reported sales of 4.58 billion euros in the 2024/25 fiscal year and employs more than 19,900 people. The announcement underscores the challenges facing the retail sector amid shifting consumer behavior and the increasing importance of digital and pricing strategies in maintaining competitiveness.
