Douglas Group is reviewing stores against profitability targets after posting a net loss in its third quarter to June 2026, as weak demand in Germany, France and the Netherlands and tougher price competition weighed on performance.
The European beauty retailer reported Q3 revenue of €987.8m ($1.13bn), down 2% year-on-year, while adjusted EBITDA [earnings before interest, taxes, depreciation and amortisation] fell 19.4% to €127.5m.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Net income came in at a loss of €2.6m, versus a profit of €17.3m a year earlier.
For the first nine months of FY25/26, revenue edged up 0.5% to €3.61bn, but adjusted EBITDA declined 9% to €577.3m.
Net income dropped 89.1% to €17.6m from €161.3m a year earlier.
Douglas has around 1,970 stores across Europe.
CEO Sander van der Laan said the group is responding to a shift toward online beauty purchasing.
He said: “We remain firmly committed to the success of omnichannel retail in the premium beauty sector, but will now place even greater emphasis on e-commerce.
“This also means that we will be reviewing stores critically with regard to our profitability targets.”
The company said Germany, France and the Netherlands, which account for around 60% of group business, underperformed more dynamic markets such as Poland, Spain and Italy.
In Q3, sales fell 2.8% in DACHNL, which includes Austria, Belgium, Germany, the Netherlands and Switzerland.
Sales in France fell 2.1% while Central Eastern Europe grew 4.4%.
Group online sales declined 1% in the quarter, though Douglas said e-commerce excluding Parfumdreams / Niche Beauty rose 0.6%.
The Parfumdreams / Niche Beauty unit saw sales fall 10.4%, partly due to temporary shop operating constraints.
Van der Laan said the company is reviewing pricing, increasing investment in digital capabilities and cross-channel services, and continuing selective store openings, particularly in Eastern Europe, while modernising stores in Western Europe.
He added: “The competition for share of wallet is fierce.
“We introduced different measures to adapt effectively to the changing consumer behaviour, including constantly reviewing our pricing strategy and accelerating our omnichannel transformation.”
Douglas confirmed its full-year guidance, including net sales growth of 0% to 1%, equivalent to €4.58bn to €4.63bn, and an adjusted EBITDA margin of 15%.
