Douglas (DOU) Q2 2025 earnings summary

Executive summary

• Q2 group sales declined by 2% year-over-year, with store sales flat and e-commerce down 5.6%; excluding the Disapo disposal, group sales were down 1% and e-com down 2.6%.

• Adjusted EBITDA fell from EUR 145.9m to EUR 122.4m, but reported EBITDA increased 14.5% to EUR 122.0m due to minimal adjustments.

• Net income improved from minus EUR 41m to minus EUR 19m, mainly due to lower financial costs after IPO refinancing.

• April sales rebounded, driven by the Easter effect, especially in Germany, and e-com in Germany showed significant improvement.

• Strategic investments continued in omnichannel expansion, digital transformation, and supply chain modernization under the 'Let it Bloom' strategy.

Financial highlights

• H1 sales rose 2.8% year-over-year to EUR 2,585.4 million; like-for-like sales up 2.4%.

• Adjusted EBITDA decreased 16.1% in Q2 to EUR 122.4m and 3.7% in H1 to EUR 475.9m, while reported EBITDA increased 14.5% in Q2 to EUR 122.0m and 11.1% in H1 to EUR 472.1m.

• Net income surged to EUR 144.0 million in H1, up from EUR 83.9 million in the prior year period.

• Free cash flow for H1 reached EUR 308m, or 65% of adjusted EBITDA, despite a 15.3% decline due to lower operating cash flow.

• CapEx increased, focusing on store openings, refurbishments, and IT investments.

Outlook and guidance

• FY 2024/25 sales expected around EUR 4.5bn, with adjusted EBITDA margin ~17% and net income guidance of ~EUR 175m.

• Average net working capital as a percentage of sales targeted below 5%.

• A new midterm forecast will be provided at full-year reporting in December.

• Guidance was revised downward in March 2025 to reflect weaker market conditions.