Magnificence and cosmetics retailer Douglas’ shops “below overview” after Q3 loss
Douglas Group is reviewing shops in opposition to profitability targets after posting a internet loss in its third quarter to June 2026, as weak demand in Germany, France and the Netherlands and harder worth competitors weighed on efficiency.
The European magnificence retailer reported Q3 income of €987.8m ($1.13bn), down 2% year-on-year, whereas adjusted EBITDA [earnings before interest, taxes, depreciation and amortisation] fell 19.4% to €127.5m.
Internet earnings got here in at a lack of €2.6m, versus a revenue of €17.3m a yr earlier.
For the primary 9 months of FY25/26, income edged up 0.5% to €3.61bn, however adjusted EBITDA declined 9% to €577.3m.
Internet earnings dropped 89.1% to €17.6m from €161.3m a yr earlier.
Douglas has round 1,970 shops throughout Europe.
CEO Sander van der Laan stated the group is responding to a shift towards on-line magnificence buying.
He stated: “We stay firmly dedicated to the success of omnichannel retail within the premium magnificence sector, however will now place even higher emphasis on e-commerce.
“This additionally means that we are going to be reviewing shops critically with regard to our profitability targets.”
The corporate stated Germany, France and the Netherlands, which account for round 60% of group enterprise, underperformed extra dynamic markets similar to Poland, Spain and Italy.
In Q3, gross sales fell 2.8% in DACHNL, which incorporates Austria, Belgium, Germany, the Netherlands and Switzerland.
Gross sales in France fell 2.1% whereas Central Japanese Europe grew 4.4%.
Group on-line gross sales declined 1% within the quarter, although Douglas stated e-commerce excluding Parfumdreams / Area of interest Magnificence rose 0.6%.
The Parfumdreams / Area of interest Magnificence unit noticed gross sales fall 10.4%, partly because of momentary store working constraints.
Van der Laan stated the corporate is reviewing pricing, growing funding in digital capabilities and cross-channel companies, and persevering with selective retailer openings, significantly in Japanese Europe, whereas modernising shops in Western Europe.
He added: “The competitors for share of pockets is fierce.
“We launched totally different measures to adapt successfully to the altering shopper behaviour, together with always reviewing our pricing technique and accelerating our omnichannel transformation.”
Douglas confirmed its full-year steering, together with internet gross sales progress of 0% to 1%, equal to €4.58bn to €4.63bn, and an adjusted EBITDA margin of 15%.
“Magnificence and cosmetics retailer Douglas’ shops “below overview” after Q3 loss” was initially created and revealed by Retail Perception Community, a GlobalData owned model.
