Douglas downgrades 2024/5 forecast as customer sentiment weakens

THE WHAT? Douglas has announced that it is lowering its sales forecast for the 2024/25 financial year. The German pharmacy chain now expects sales of €4.5 billion (down from the previous €4.7-4.8 billion) and net income of €175 – a far cry from the previous guidance of €225-265 million.

THE DETAILS Sander van der Laan, CEO of the DOUGLAS Group, said the company has already embarked upon several countermeasures to drive sales and stabilize gross margin.

“These are challenging times and we already took striking decisions,” said van der Laan. “We move every lever in our business to safeguard our sales and profits – as well as our employees and shareholders.

“We do this very consistently and with highest priority: with targeted investments in growth and with extensive cost savings. We are confident that we will overcome these challenges and that the premium beauty market will recover when the global economic situation improves.”

THE WHY? Douglas said that adjustment was the result of the growing impact of global macro-economic and political uncertainties on the premium beauty sector, characterized by a slowdown in European sales – especially in Germany and France where the retailer is experiencing lower traffic in store and online.

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