Douglas (DOU) Q1 25/26 earnings summary

Executive summary

• Sales grew 1.7% year-over-year to €1.67 billion in Q1, with e-commerce up 4.2% and store sales up 0.4%, despite a challenging consumer environment and increased price sensitivity.

• Adjusted EBITDA declined 5.6% to €333.7 million (margin: 19.9%) due to increased promotional activity and adverse product mix effects.

• Net income fell to €144.8 million, with EPS of €1.35.

• E-commerce now represents 33.9% of total sales, up 80 bps from last year.

• Store network expanded with 13 net new stores and 22 refurbishments, reaching 1,972 stores as of December 2025.

Financial highlights

• Gross profit margin decreased by 120bps to 42.4% due to heightened promotional activity and price sensitivity.

• Net leverage ratio increased to 2.6x (1.4x pre-IFRS16), reflecting higher lease liabilities from store expansion.

• Free cash flow after property rents was €383 million, with net financial debt reduced from €789 million to €609 million.

• Average net working capital as a percentage of sales improved to 3.6%, supported by supply chain financing.

• CapEx increased by €6 million year-over-year, with 15 store openings and 22 refurbishments.

Outlook and guidance

• Full-year guidance confirmed: sales expected between €4.65–4.80 billion, adjusted EBITDA margin around 16.5%, and net leverage between 2.5x and 3.0x by September 2026.

• Margin improvement in H2 expected from SG&A efficiency and store ramp-up, despite continued gross margin pressure.

• CAPEX (excluding leases) projected at €150 million for the year.

• France segment now expected to have sales in line with prior year and a slightly lower adjusted EBITDA margin.

• CEE segment expected to maintain adjusted EBITDA margin in line with prior year; Parfumdreams/Niche Beauty now expected to see robust sales growth.