Douglas AG on Thursday revised down its sales and profitability outlook for fiscal 2025/26, citing subdued customer spending and evolving purchase patterns across channels. The German beauty retailer said it now anticipates net sales growth of 0% to 1% for the year, implying revenues of between C4.58 billion and C4.63 billion.
That guidance replaces the prior sales range, which had pointed to revenues at the lower end of C4.65 billion to C4.80 billion. Alongside the sales revision, Douglas trimmed its adjusted EBITDA margin target to around 15.0% from the previously stated 16.0%.
The company also updated its leverage outlook. Douglas now expects net leverage to be in the range of 3.0x to 3.5x by September 30, 2026, an increase from its earlier target that capped the ratio at the upper end of 2.5x to 3.0x.
Quarter performance and market context
Douglas said third-quarter results have come in below internal expectations. Management attributed the shortfall to ongoing macroeconomic uncertainty and pronounced price sensitivity among customers, which has weakened willingness to make discretionary purchases. The company noted that many shoppers are postponing buys in the hope of future promotions.
Within the European premium beauty segment, Douglas described a continued structural shift toward online channels. The company reported that online sales are growing faster than in-store sales, while physical locations are recording negative like-for-like sales. Cross-channel offerings such as Click-and-Collect were highlighted as performing strongly.
Strategic response
In response to the trading backdrop, Douglas said it will reallocate investment away from stores and toward its online business, invest in more competitive pricing, further strengthen differentiation and exclusivity, and accelerate digitalisation efforts. The company said it will provide more detail on these strategic measures when it reports quarterly results on August 12, 2026.
"Consumer behavior and market dynamics have changed significantly. In this challenging environment, we fully focus on our strategic priorities: we shift investments from our store to our online business; we are investing in competitive pricing, while further strengthening our differentiation and exclusivity; and we are continuing to drive digitalization forward," said Sander van der Laan, CEO of the Douglas Group.
Following the guidance cuts and the updated leverage outlook, Douglas shares fell more than 6.1% in after-hours trading.
Key summary
- Douglas lowered its full-year sales outlook to C4.58 billion- C4.63 billion and cut its adjusted EBITDA margin target to ~15.0%.
- Net leverage is now expected at 3.0x-3.5x by September 30, 2026, up from prior targets.
- The company plans to shift spending from stores to online, adjust pricing, enhance exclusivity, and speed up digital initiatives, with more detail due on August 12, 2026.
Impacted sectors
- Retail - premium beauty segment and brick-and-mortar operations.
- Consumer discretionary - spending patterns and promotional sensitivity.
- E-commerce - online channel growth and cross-channel services.