German beauty giant Douglas has reported lower-than-expected first-quarter core profit, triggering a sharp 16% drop in its stock price. The retailer, known for luxury brands like Chanel and Dior, attributed the shortfall to intensified promotional activity amid weakening consumer demand.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 1.5% to €353.5 million, falling short of analysts’ €371.1 million forecast. In response, Douglas now anticipates its full-year adjusted EBITDA to land at the lower end of its €855–€885 million target range for the 2024/25 fiscal year.
A delayed Black Friday, sluggish store sales in key markets such as Germany and France, and fading holiday demand in December contributed to the disappointing quarter. Traditionally, this period is a peak shopping season, featuring major retail events like Singles’ Day, Black Friday, and Christmas.
The stock’s 15% decline marked its worst trading day since the company’s IPO in March 2024. Heavily indebted, Douglas has reaffirmed its commitment to reducing financial burdens and has no immediate plans to reinstate dividend payments.
As Europe’s largest beauty retailer, Douglas’s slowdown underscores shifting consumer trends, with cautious spending reshaping the prestige cosmetics and personal care market. While discounts have driven sales, they have also squeezed profitability, forcing the company to strike a delicate balance between promotional strategies and brand value while working to regain growth in its core European markets.
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