Douglas Reports Q3 Revenue Decline, Accelerates Digital Shift

Douglas, Europe’s largest beauty retailer, reported a 2.0% decline in third-quarter revenue for its 2025/2026 fiscal year, citing sluggish demand in key markets and intense price competition. The company’s revenue fell to €987.8 million, while adjusted EBITDA dropped 19.4% to €127.5 million, reflecting a 12.9% margin. Despite growth in Central and Eastern Europe (+4.4%), declines in the DACHNL region (-2.8%) and France (-2.1%) weighed on overall performance. Douglas operates in France through its Nocibé banner. ## Market Challenges and Regional Disparities While the European luxury beauty market continues to expand, Douglas noted that Germany, France, and the Netherlands-accounting for 60% of its business-are underperforming compared to more dynamic markets like Poland, Spain, and Italy. Consumer demand remains weak in Germany and the Netherlands, while France shows stability. The company’s online segment, Parfumdreams, faced operational issues in Germany, leading to a 10.4% sales drop in its Parfumdreams/Niche Beauty division. However, online sales surged in Central and Eastern Europe, Southern Europe, and France, where digital channels now contribute up to 25% of total revenue. Douglas highlighted this growth as evidence of shifting consumer preferences toward online shopping. ## Strategic Shift Toward Digital and Store Optimization For the first nine months of the fiscal year, Douglas reported stable omnichannel sales (+0.5% to €3.61 billion), though adjusted EBITDA fell 9.0% to €577.3 million (16.0% margin). CEO Sander van der Laan acknowledged fierce competition for consumer spending, stating, *"The fight for the consumer’s wallet is intense."* The company is adjusting its pricing strategy while accelerating its digital transformation. *"We are redirecting investments to enhance our digital offerings and customer experience, leveraging exclusivity and cross-category services to drive sales growth,"* van der Laan explained. Douglas expects online sales to grow further and will prioritize e-commerce, including a critical review of its physical stores for profitability. While selective store openings will continue, particularly in Eastern Europe, Douglas will modernize its Western European locations. *"In markets where digital adoption is strongest, we will fine-tune the balance between online and in-store operations to match customer behavior,"* van der Laan added. The company maintains its full-year outlook despite the challenges.