Douglas (DOU) Q2 2025 earnings summary

Executive summary

• Q2 group sales declined by 2% year-over-year, mainly due to negative like-for-like sales and a tough e-commerce environment, especially in Germany and France.

• Adjusted EBITDA decreased 16.1% to EUR 122.4 million, while reported EBITDA increased 14.5% due to fewer adjustments.

• Net income improved significantly, reducing the loss from minus EUR 41 million to minus EUR 19 million, driven by lower financial costs following IPO refinancing.

• April sales rebounded, benefiting from the Easter shift, with notable improvement in Germany and e-commerce.

• The group reconfirmed or adjusted full-year guidance, with ongoing execution of the "Let it Bloom" strategy and continued strategic investments.

Financial highlights

• Q2 sales: EUR 939 million (-2.0% YoY); stores: EUR 626 million (-0.1% YoY); E-Com: EUR 313 million (-5.6% YoY).

• Adjusted EBITDA fell to EUR 122.4 million from EUR 145.9 million; reported EBITDA rose due to minimal adjustments.

• Net financial debt reduced by EUR 96 million to EUR 1.0 billion; leverage slightly increased to 2.8x.

• Free cash flow reached EUR 308 million, 65% of adjusted EBITDA.

• Net working capital as a percentage of LTM sales improved to 5.3%.

Outlook and guidance

• FY 2024/2025 sales expected at around EUR 4.5 billion, adjusted EBITDA margin ~17%, net income guidance of ~EUR 175 million, and net working capital below 5%.

• New midterm forecast to be provided at full-year reporting in December.

• Continued investment in store network, e-commerce, and IT infrastructure planned.