Douglas (DOU) Q1 24/25 earnings summary

Executive summary

• Q1 FY 2024/25 sales rose 5.8% to €1,646.4 million, with store sales up 5.7% and e-commerce up 6.2%, driven by omnichannel momentum and network expansion, though growth slowed in late December and January due to negative consumer sentiment and a late Black Friday.

• Adjusted EBITDA increased 1.5% to €353.5 million, reported EBITDA up 9.9% to €350.1 million, with margin slightly down to 21.5%.

• Net income rose 30.2% to €163 million, supported by lower interest expenses, strong cash flow, and improved leverage ratio at 2.3x.

• Store network surpassed 1,900 locations, with 21 new openings and 36 refurbishments in Q1.

• The group continues to execute its Let It Bloom strategy, focusing on store expansion, e-commerce innovation, exclusive brand launches, and supply chain transformation.

Financial highlights

• Group like-for-like sales increased by 5.3%, with reported sales up 5.8% to €1,646.4 million, driven by store expansion.

• Adjusted EBITDA at €353.5 million (+1.5%), reported EBITDA at €350.1 million (+9.9%).

• Gross profit margin declined to 43.6% due to higher promotional activity and cost of goods sold.

• Free cash flow after EBITDA adjustments reached €494.5 million, up 7.6% year-over-year.

• Available liquidity at €714 million; net debt including IFRS 16 at €1,884 million.

Outlook and guidance

• FY 2024/25 sales expected between €4.7–4.8 billion; adjusted EBITDA forecasted at the lower end of €855–885 million.

• Net income guidance set at €225–265 million; leverage ratio targeted at 2.0x by end of 2025.

• Average net working capital projected to remain below 5% of sales for FY 2024/25.