The DOUGLAS Group on Wednesday adjusted its financial guidance for the 2025/26 fiscal year, citing weaker-than-expected third-quarter business performance and a challenging macroeconomic environment that has dampened customer confidence and willingness to buy. The company now expects net sales growth of 0-1%, corresponding to a range of 4.58 to 4.63 billion euros, compared with its previous outlook of sales at the lower end of 4.65 to 4.80 billion euros. Adjusted EBITDA margin is forecast at around 15.0%, down from the earlier projection of approximately 16.0%. Net leverage is expected to be between 3.0x and 3.5x as of September 30, 2026, versus the prior target of the upper end of 2.5x to 3.0x.
The revised guidance reflects a significant shift in consumer behavior, with customers remaining highly price-sensitive and often delaying purchases in anticipation of promotions, according to the company. The European premium beauty market continues to be affected by ongoing geopolitical and macroeconomic uncertainties, leading to a faster growth of e-commerce compared with stores, while like-for-like store sales have turned negative. Channel mix, category mix, and overall spending patterns vary across markets, though cross-channel services such as Click-and-Collect are performing strongly.
In response, the DOUGLAS Group is reallocating investments from its store network to its online business, sharpening its focus on differentiation and exclusivity, investing in competitive pricing, and accelerating digitalization. CEO Sander van der Laan said, “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. Some of these measures will deliver short-term benefits, while others will take longer to materialize. We act swiftly, with focus and purpose – we are guided by a sustainable medium- to long-term approach.”
The company emphasized that its omnichannel business model, strong brand, and partnerships with premium beauty suppliers position it well to navigate the current headwinds. Van der Laan added, “In the current market environment, both differentiation and pricing matter more than ever. Our omnichannel model, our curated premium assortment, an attractive pricing and our excellent brand name give us a clear competitive edge and we are executing on this with focus and discipline.”
The DOUGLAS Group plans to provide further details and an update on strategic measures during its quarterly reporting on August 12, 2026. For more information, visit the DOUGLAS Group website. The original press release is available at NewMediaWire.
