Douglas (DOU) Q2 2026 earnings summary

Executive summary

• Q2 2025/26 sales increased by 1.1% year-over-year to €949.7 million, driven by e-commerce (+2.4%) and network expansion, with CEE and DACHNL growing while France, Southern Europe, and Parfumdreams/Niche Beauty declined.

• Adjusted EBITDA declined 5.1% to €116.1 million, with margin down to 12.2% due to consumer price sensitivity, promotions, and impairments.

• Significant non-cash goodwill and asset impairments totaled €113.5 million (mainly France and Parfumdreams/Niche Beauty), resulting in a net loss of €124.6 million and adjusted net loss of €10 million.

• Strategic focus remains on omnichannel, exclusive/corporate brands (now nearly 15% of sales), and digital innovation, including the launch of an AI Beauty Advisor and expansion of the Beauty Card loyalty program to over 64 million members.

• Omnichannel and exclusive/corporate brands are key priorities, with four new exclusive brands launched in Q2.

Financial highlights

• Group revenues reached €949.7 million in Q2 2025/26, up 1.1% year-over-year; like-for-like sales declined 1.3%.

• Adjusted EBITDA margin fell from 13% to 12.2%; gross profit margin declined from 45.2% to 44.5% due to increased promotional activity.

• Net working capital improved to 3.5% of sales, with average net working capital down to €161 million.

• CapEx for Q2 was €26 million, down from €36 million last year, with investments focused on store refurbishments and technology.

• Net financial debt reduced to €852 million; net leverage at 2.9x adjusted EBITDA (2.0x pre-IFRS 16).

Outlook and guidance

• Full-year sales expected at the lower end of €4.65–4.80 billion, with adjusted EBITDA margin guidance revised to around 16%.

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

• Market environment remains challenging, with premium beauty market growth forecast at ~3% for the next three years.