Douglas (DOU) Q1 24/25 earnings summary

Executive summary

• Q1 FY 2024/25 sales rose 5.8% year-over-year to €1,646.4 million, with all segments contributing positively and omnichannel momentum driving growth.

• Net income increased 30.2% to €163 million, supported by lower interest expenses, operational improvements, and strong cash flow.

• Adjusted EBITDA grew 1.5% to €353.5 million, while reported EBITDA rose 9.9% year-over-year; margin slightly declined to 21.5%.

• Free cash flow improved 7.6% to €494.5 million; leverage ratio reduced to 2.3x, down from 4.0x year-over-year.

• Store network surpassed 1,900 locations, with 21 new openings and 36 refurbishments in Q1.

Financial highlights

• Group like-for-like sales rose 5.3%, reported sales up 5.8% to €1,646.4 million, driven by store expansion.

• Gross profit margin declined by 1.0ppt to 43.6% due to higher cost of goods sold.

• Free cash flow after adjustments reached €494.5 million, up nearly 8% year-over-year.

• Net working capital as a percentage of sales improved to 5.4%; inventory turnover period reduced to 121 days.

• Available liquidity at €714 million; net debt including IFRS 16 at €1,884 million.

Outlook and guidance

• FY 2024/25 sales expected between €4.7–4.8 billion, with adjusted EBITDA forecasted at the lower end of €855–885 million.

• Net income guidance set at €225–265 million; leverage ratio targeted at 2.0x by end of 2025.

• Average net working capital projected to remain below 5% of sales for FY 2024/25.