Yesterday, German premium beauty retailer Douglas reported a 16% drop in adjusted core profit for the second quarter of its 2024/25 financial year, reflecting persistent weakness in consumer sentiment and demand. The company’s adjusted EBITDA fell to €122.4 million, down from the previous year, though slightly ahead of analysts’ expectations of €118.5 million, according to a consensus from Vara Research.
CEO Sander van der Laan attributed the decline to a volatile macroeconomic environment and shifting consumer behavior. He noted a downturn in foot traffic to physical stores as well as reduced online visits, underscoring a broader trend of weakening demand for personal care and beauty products across the sector.
Group sales slipped by 2% year-on-year to €939 million, falling short of the anticipated €946.9 million. Douglas also pointed to negative calendar effects, with Easter sales shifting to the third quarter due to the holiday’s timing in April.
Despite the challenging quarter, Douglas managed to narrow its net loss to €19 million, a notable improvement from the €41.3 million loss recorded in the same period last year. The company credited this to proceeds from its 2023 IPO and a successful refinancing initiative completed earlier in 2024.
Douglas reaffirmed its revised full-year outlook, which had been lowered in March amid faster-than-expected deterioration in the European premium beauty market. The company said it will issue a new mid-term guidance alongside its full-year results in December.
