Douglas
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Douglas (DOU) investor relations material

Douglas Q1 25/26 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 25/26 earnings summary11 Feb, 2026

Executive summary

  • Sales grew 1.7% year-over-year to €1.67 billion in Q1, with e-commerce up 4.2% and store sales up 0.4%, despite a challenging consumer environment and increased price sensitivity.

  • Adjusted EBITDA declined 5.6% to €333.7 million (margin: 19.9%) due to increased promotional activity and adverse product mix effects.

  • Net income fell to €144.8 million, with EPS of €1.35.

  • E-commerce now represents 33.9% of total sales, up 80 bps from last year.

  • Store network expanded with 13 net new stores and 22 refurbishments, reaching 1,972 stores as of December 2025.

Financial highlights

  • Gross profit margin decreased by 120bps to 42.4% due to heightened promotional activity and price sensitivity.

  • Net leverage ratio increased to 2.6x (1.4x pre-IFRS16), reflecting higher lease liabilities from store expansion.

  • Free cash flow after property rents was €383 million, with net financial debt reduced from €789 million to €609 million.

  • Average net working capital as a percentage of sales improved to 3.6%, supported by supply chain financing.

  • CapEx increased by €6 million year-over-year, with 15 store openings and 22 refurbishments.

Outlook and guidance

  • Full-year guidance confirmed: sales expected between €4.65–4.80 billion, adjusted EBITDA margin around 16.5%, and net leverage between 2.5x and 3.0x by September 2026.

  • Margin improvement in H2 expected from SG&A efficiency and store ramp-up, despite continued gross margin pressure.

  • CAPEX (excluding leases) projected at €150 million for the year.

  • France segment now expected to have sales in line with prior year and a slightly lower adjusted EBITDA margin.

  • CEE segment expected to maintain adjusted EBITDA margin in line with prior year; Parfumdreams/Niche Beauty now expected to see robust sales growth.

How to counter gross margin pressure
PDNB segment recovery plan for EBITDA
How will IFRS 16 lease liabilities impact future leverage?
Exclusive brands: sales share target
IT system harmonization timeline for France/Italy
Inventory management strategy and risks
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Frequently asked questions

Douglas AG is a retailer in the beauty and cosmetics sector in Europe. The company offers a wide range of products, including fragrances, cosmetics, skincare, and hair care products through its extensive network of physical stores and online platforms. Douglas has historically been known for its strong presence in the perfume industry but has diversified to include a broad spectrum of beauty and personal care items. The company is headquartered in Düsseldorf, Germany, and its shares are listed on the Frankfurt Stock Exchange.

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