Stock Markets February 11, 2026

Douglas Confirms Q1 Revenue Uptick While Adjusted EBITDA Margin Narrows

European beauty retailer posts modest sales growth, holds 2026 guidance as leverage edges higher

By Maya Rios
Douglas Confirms Q1 Revenue Uptick While Adjusted EBITDA Margin Narrows

Douglas AG reported first-quarter results confirming preliminary figures: sales of €1.67 billion, a 1.7% year-over-year increase, and adjusted EBITDA of €334 million, amounting to a 19.9% margin, down 1.6 percentage points from the prior year. Net income was €144.8 million, slightly above analyst consensus, while like-for-like sales fell 0.3%. The company reiterated its full-year 2026 guidance and reported a rise in net leverage to 2.6x as of December 2025.

Key Points

  • Douglas reported Q1 sales of €1.67 billion, up 1.7% year-over-year, with adjusted EBITDA of €334 million and a 19.9% margin, down 1.6 percentage points.
  • Channel performance was mixed - eCommerce sales rose 4.2%, store sales climbed 0.4%, and the retailer added 13 net new stores; Germany and France showed flat development.
  • The company kept its 2026 guidance unchanged: sales €4.65-4.80 billion, adjusted EBITDA margin around 16.5%, net leverage 2.5x-3.0x, average net working capital below 4% of sales, and capex (ex leases) about €150 million.

Douglas AG on Wednesday confirmed its preliminary first-quarter trading metrics, reporting sales of €1.67 billion, an increase of 1.7% versus the same period a year earlier. Adjusted EBITDA reached €334 million, which corresponds to a margin of 19.9% - a contraction of 1.6 percentage points compared with the prior year.

The European beauty retailer disclosed net income of €144.8 million, marginally above analyst consensus of €142.8 million. The company also reported a small decline in like-for-like sales, which were down 0.3% for the quarter.

Breaking performance down by channel, eCommerce continued to grow, with online sales up 4.2% in the period, while in-store sales rose 0.4%. Douglas added a net 13 stores during the quarter. The company described development in Germany and France as "flat," calling those markets out as weaker areas within its network.

On balance-sheet metrics, net leverage increased to 2.6x in December 2025, compared with 2.3x in December 2024. Despite the uptick in leverage and the margin contraction in Q1, Douglas left its full-year 2026 guidance unchanged.

For 2026 the company expects sales in the range of €4.65 billion to €4.80 billion and aims for an adjusted EBITDA margin of around 16.5%. Management reiterated a target net leverage band of 2.5x to 3.0x, an average net working capital below 4% of sales, and capital expenditures excluding leases of approximately €150 million.

Douglas operates a network of more than 1,850 stores across over 20 countries, with a pronounced presence in Germany and France. The company highlighted the mix between online growth and modest brick-and-mortar gains in describing its recent quarter.


What this means

The results confirm that Douglas achieved modest top-line growth in Q1 while encountering margin pressure. Management's decision to maintain full-year guidance leaves the market with the company’s stated targets for sales range, margin expectations, leverage, working capital, and capital spending intact.

Risks

  • Narrowing adjusted EBITDA margin - a 1.6 percentage point decline year-over-year - could pressure profitability for the retailer and affect investor returns; this impacts the consumer discretionary and retail sectors.
  • Flat development in key markets such as Germany and France indicates regional weaknesses that may limit growth, affecting European retail exposure.
  • An increase in net leverage to 2.6x in December 2025 from 2.3x in December 2024 raises balance-sheet risk and could influence borrowing costs or financial flexibility for the company and comparable retail firms.

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