Douglas (DOU) Q2 2026 earnings summary

Executive summary

• Q2 2025/26 sales grew 1.1% year-over-year to €949.7 million, led by e-commerce and network expansion, while CEE and DACHNL outperformed and France, Southern Europe, and Parfumdreams/Niche Beauty declined.

• Adjusted EBITDA declined 5.1% to €116.1 million (margin 12.2%), reflecting margin pressure from promotions and consumer price sensitivity.

• Net loss reached €124.6 million in Q2, mainly due to €113.5 million in goodwill and asset impairments in France and Parfumdreams/Niche Beauty.

• Strategic focus remains on omnichannel, exclusive brands, digital innovation, and AI-enabled services, with loyalty program membership surpassing 64 million.

• The premium beauty market in Europe is slowing, with mature markets underperforming and consumer sentiment at multi-year lows.

Financial highlights

• Group revenues reached €949.7 million in Q2 (+1.1% YoY); like-for-like sales declined 1.3%.

• Adjusted EBITDA was €116.1 million (12.2% margin), down from €122 million (13% margin) last year.

• Gross profit margin declined to 44.5% (down 70bps YoY).

• Adjusted net loss was €10 million; reported net loss was €124.6 million due to impairments.

• Free cash flow post-rent was €127 million for H1.

Outlook and guidance

• Full-year sales expected at the lower end of €4.65–4.8 billion, with adjusted EBITDA margin around 16%.

• Net leverage forecasted at the upper end of 2.5x–3.0x by September 2026.

• Market environment expected to remain challenging, with premium beauty market growth revised to ~3% for the next three years.

• Segment outlooks revised downward for DACHNL and France, with CEE expected to maintain significant growth.