Douglas AG reported second-quarter results that showed only slight revenue gains and a decline in adjusted profitability, underscoring ongoing pressures in its markets.
Sales for the quarter increased 1.1% year-on-year to €949.7 million. The company said brick-and-mortar revenue rose 0.5%, while e-commerce, including cross-channel sales, expanded 2.4%.
On an earnings basis, adjusted EBITDA declined 5.1% to €116.1 million, yielding an adjusted EBITDA margin of 12.2%, down from 13.0% in the prior-year period. Adjusted EBIT was reported at €19.1 million, compared with €32.1 million a year earlier.
Douglas attributed the deterioration in profitability to a combination of factors it sees affecting performance across its footprint: slower growth in more mature markets, an uptick in pricing and promotional activity, and generally weak consumer sentiment in the euro area.
The company confirmed the guidance it revised at the end of April. For fiscal year 2025/26 management continues to expect sales toward the lower end of its initial €4.65 billion to €4.80 billion range. Adjusted EBITDA margin is now projected to be around 16.0%, versus the earlier target of approximately 16.5%.
Douglas also provided a leverage outlook, saying net leverage is expected to be at the upper end of the 2.5x to 3.0x range as of September 30, 2026.
On a reported basis the quarter included material non-cash charges. The company recorded a net loss of €124.6 million, driven principally by goodwill impairments of €99.0 million related to its French business NOCIBÉ and Parfumdreams, along with additional asset impairments of €14.5 million. On an adjusted basis, net income was negative €10.0 million, compared with negative €12.2 million in the same quarter last year.
Context for markets and investors
The results show revenue resilience but highlight margin pressure and one-off write-downs that materially affected reported profitability. Management is maintaining its conservative revised outlook for the full year and is signaling higher leverage near the top of its target range by the end of the projection period.
What to watch next
- Execution on margin recovery toward the revised adjusted EBITDA margin target of about 16.0%.
- Progress in stabilizing growth in mature markets and controlling promotional intensity.
- Developments around net leverage as of September 30, 2026, and any related financing or balance-sheet actions.