Key Takeaways:

• DOUGLAS Group posted Q3 sales of €1 billion, up 3.2%.
• Quarterly net income swung to €17.3 million from a €71.6 million loss a year ago.
• The “Let it Bloom” growth plan advanced with 22 new store openings and 39 refurbishments.

DOUGLAS Group, Europe’s leading premium beauty retailer, recently posted a solid rebound in Q3 2024/25, signaling renewed momentum after a softer second quarter. Group sales climbed 3.2% year-over-year (YoY) to €1 billion ($1.17 billion) in the April-June period, driven by strong regional performances and accelerating e-commerce gains. The results reflect both strategic execution and resilience in a volatile consumer landscape, where inflationary pressures and uneven regional demand have challenged retailers across the sector.

E-commerce continued to be a central growth driver, expanding 5.4% versus last year, or +8.2% when excluding the impact of Disapo, DOUGLAS’ online pharmacy business in Germany. Meanwhile, brick-and-mortar sales grew at a steadier 2.1%, as the Group’s omnichannel strategy continued to blend digital convenience with in-store experience. Notably, cross-channel sales surged 24% in Q3, underlining the strength of DOUGLAS’ integrated retail model.

Regionally, the standout performance came from Central Eastern Europe, where sales surged 10.5%, and Parfumdreams/Niche Beauty, which delivered 19.2% growth. Germany, the Group’s largest market, recorded a modest +1.2% sales lift, while Southern Europe grew 3.4% and Western Europe advanced 1.9%.

On profitability, DOUGLAS delivered a significant turnaround. Net income rose to €17.3 million ($20.2 million), compared to a loss of €71.6 million ($83.8 million) in the prior year quarter, driven by operational efficiencies and revenue gains. Adjusted EBITDA also improved, providing confidence in the group’s full-year guidance for sales slightly above €4.5 billion ($5.2 billion) and an adjusted EBITDA margin at the upper end of the target range.

Q3 2024/25 Financial Highlights

• Group sales reached €1.0 billion ($1.1 billion), up 3.2% YoY, with broad-based growth led by Central Eastern Europe and Parfumdreams/Niche Beauty.
• E-commerce sales grew 5.4%, or 8.2% when excluding the Disapo online pharmacy business in Germany, significantly outpacing store performance.
• Store sales increased 2.1%, supported by targeted assortment strategies and in-store activations.
• Cross-channel sales surged 24%, driven by click-and-collect, ship-from-store, and in-store returns.
• Central Eastern Europe delivered the strongest regional growth at 10.5%.
• Parfumdreams/Niche Beauty rose 19.2%, benefiting from curated assortments and loyal niche beauty consumers.
• Germany, DOUGLAS’ largest market, posted a 1.2% sales increase.
• Southern Europe grew 3.4%, while Western Europe advanced 1.9%.
• Net income improved sharply to €17.3 million ($20.2 million), compared to a loss of €71.6 million ($83.8 million) in Q3 2023/24.
• The group reaffirmed its full-year guidance, targeting sales slightly above €4.5 billion ($5.2 billion) and an adjusted EBITDA margin at the upper end of the target range.

Regional Performance Breakdown

• Germany: Sales grew 1.2% YoY, reflecting stable consumer demand and resilience in a competitive domestic landscape.
• Central Eastern Europe: Strongest regional driver with 10.5% growth, supported by rising demand in Poland, the Czech Republic, and Hungary.
• Southern Europe: Achieved 3.4% growth, aided by higher tourist traffic and seasonal promotions.
• Western Europe: Delivered 1.9% growth, led by France and the Netherlands.
• Parfumdreams/Niche Beauty: Online specialty and niche beauty retail segment grew 19.2%, benefiting from strong brand curation and loyal customer bases.

Channel Performance

• E-commerce: Digital sales expanded 5.4% (or 8.2% excluding Disapo), with strong engagement in high-margin categories.
• Brick-and-Mortar: Sales rose 2.1%, supported by targeted assortment strategies and experience-led activations.
• Cross-Channel Sales: Jumped 24%, highlighting the strength of Douglas’ integrated click-and-collect, ship-from-store, and in-store returns models.

Profitability & Outlook

DOUGLAS significantly improved its bottom line, with net income reaching €17.3 million ($20.2 million) versus a €71.6 million ($83.8 million) loss in the prior year quarter. This turnaround was underpinned by better cost discipline, improved product mix, and revenue growth in higher-margin segments.

The group reaffirmed its FY 2024/25 guidance:

• Sales slightly above €4.5 billion ($5.2 billion)
• Adjusted EBITDA margin expected at the upper end of the targeted range

Management emphasized continued investment in digital infrastructure, data-driven personalization, and expanding omnichannel capabilities to sustain growth into FY 2025/26. Sander van der Laan, CEO of the DOUGLAS Group, said in a statement, “We have delivered solid overall growth and are on track to achieve our guidance for the current financial year. We continue to do our homework, [and] we remain committed to keeping SG&A costs under control, and driving our strategic development, including strengthening our brand and advancing our supply chain and IT capabilities.”

DOUGLAS’ Q3 results underline a successful rebound from Q2 softness, with e-commerce acceleration, regional growth, and strong profitability recovery as key themes. The balance between digital momentum and physical store performance, plus the outsized contribution from Central Eastern Europe and Parfumdreams, positions the group well for the remainder of the fiscal year.