Beauty and cosmetics retailer Douglas’ stores “under review” after Q3 loss

Douglas Group is reviewing stores against profitability targets aft posting a nett nonaccomplishment successful its 3rd 4th to June 2026, arsenic anemic request successful Germany, France and the Netherlands and tougher terms contention weighed connected performance.

The European quality retailer reported Q3 gross of €987.8m ($1.13bn), down 2% year-on-year, portion adjusted EBITDA [earnings earlier interest, taxes, depreciation and amortisation] fell 19.4% to €127.5m.

Net income came successful astatine a nonaccomplishment of €2.6m, versus a nett of €17.3m a twelvemonth earlier.

For the archetypal 9 months of FY25/26, gross 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 twelvemonth earlier.

Douglas has astir 1,970 stores crossed Europe.

CEO Sander van der Laan said the radical is responding to a displacement toward online quality purchasing.

He said: "We stay firmly committed to the occurrence of omnichannel retail successful the premium quality sector, but volition present spot adjacent greater accent connected e-commerce.

"This besides means that we volition beryllium reviewing stores critically with respect to our profitability targets."

The institution said Germany, France and the Netherlands, which relationship for astir 60% of radical business, underperformed much dynamic markets specified arsenic Poland, Spain and Italy.

In Q3, income fell 2.8% successful DACHNL, which includes Austria, Belgium, Germany, the Netherlands and Switzerland.

Sales successful France fell 2.1% portion Central Eastern Europe grew 4.4%.

Group online income declined 1% successful the quarter, though Douglas said e-commerce excluding Parfumdreams / Niche Beauty roseate 0.6%.

The Parfumdreams / Niche Beauty portion saw income autumn 10.4%, partially owed to impermanent store operating constraints.

Van der Laan said the institution is reviewing pricing, expanding concern successful integer capabilities and cross-channel services, and continuing selective store openings, peculiarly successful Eastern Europe, portion modernising stores successful Western Europe.

He added: "The contention for stock of wallet is fierce.

"We introduced antithetic measures to accommodate efficaciously to the changing user behaviour, including perpetually reviewing our pricing strategy and accelerating our omnichannel transformation."

Douglas confirmed its full-year guidance, including nett income maturation of 0% to 1%, equivalent to €4.58bn to €4.63bn, and an adjusted EBITDA borderline of 15%.

"Beauty and cosmetics retailer Douglas' stores "under review" aft Q3 loss" was primitively created and published by Retail Insight Network, a GlobalData owned brand.