Douglas Warns of Slowing Demand as Q1 Profits Fall Short of Expectations
German beauty heavyweight Douglas has reported first-quarter core profit below analyst forecasts, prompting a 16% stock drop. The post Douglas Warns of Slowing Demand as Q1 Profits Fall Short of Expectations appeared first on Global Cosmetics News.
THE WHAT? German beauty heavyweight Douglas has reported first-quarter core profit below analyst forecasts, prompting a 16% stock drop. The retailer, known for carrying prestige cosmetics brands like Chanel and Dior, blamed intensified promotions amid cooling demand for the missed results.
THE DETAILS
- First-quarter adjusted EBITDA rose 1.5% to €353.5 million, missing the market consensus of €371.1 million.
- Douglas now expects adjusted EBITDA to hit the lower end of its €855–€885 million forecast range for the 2024/25 fiscal year.
- A late Black Friday, softer store sales in Germany and France, and waning holiday momentum in December all contributed to dampened performance.
- The quarter is a traditionally busy season, encompassing key shopping events like Singles’ Day, Black Friday, and Christmas.
- Shares tumbled by over 15%, marking the worst trading day since Douglas’s listing in March 2024.
- Highly indebted, Douglas remains focused on reducing its financial obligations, indicating no immediate plans to reinstate dividends.
THE WHY? As Europe’s largest beauty retailer, Douglas’s slower-than-expected growth signals a broader market shift toward cautious consumer spending in prestige cosmetics and personal care. With discount-driven strategies now impacting profitability, the retailer must balance promotional intensity against maintaining brand value, all while striving to regain momentum across core European markets.
The post Douglas Warns of Slowing Demand as Q1 Profits Fall Short of Expectations appeared first on Global Cosmetics News.
