Douglas (DOU) Q1 25/26 earnings summary

Executive summary

• Sales grew 1.7% year-over-year to €1.67 billion in Q1, driven by e-commerce momentum and cross-channel services, despite a challenging consumer environment and increased price sensitivity.

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

• Net income reached €144.8 million, EPS at €1.35, and net leverage (pre-IFRS 16) improved to 1.4x.

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

• Retail media and partner programs delivered double-digit sales and EBITDA growth.

Financial highlights

• Gross profit margin declined by 120 basis points year-over-year to 42.4% due to higher promotional share and price sensitivity.

• Net operating expenses rose 3% to €378 million, mainly from higher personnel costs and network expansion.

• Free cash flow after property rents was €383 million, with strong working capital contribution in Q1.

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

• Capital expenditures rose to €29.3 million, focused on store openings, refurbishments, and IT.

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.

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

• France segment 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.

• Expecting continued market volatility and subdued consumer sentiment, but confident in achieving guidance due to softer comparables in the remainder of the year.