Cosmetics chain Douglas sold more than expected last quarter. CEO Sander van der Laan now intends to focus fully on the premium beauty segment and is giving its digital channels a makeover.
Self-confidence boosted
The past third quarter was another windfall for Douglas. The German perfume and cosmetics retailer saw sales rise 7.3% to 977.1 million euros, in line with preliminary figures published by the company in July. Shop sales and online rose by about the same amount. The company also raised its outlook for the coming year and now expects some 8.5% more net sales.
In the medium term, the retailer is counting on an adjusted EBITDA margin of 18.5%. Net loss, however, doubled to more than 71.6 million euros last quarter as Douglas reduced its debt following its IPO in April. However, that flotation is not yet a success, as investors have somewhat lost faith in retail and certainly the luxury sector.
Makeover continues
CEO Sander van der Laan, by contrast, is more confident than ever about his strategy. “Our continued strong performance and steady growth – even above our expectations – show the resilience of our business model. Focusing entirely on premium beauty is the right course for us and this strategy resonates strongly with our customers,” the chief executive said. The group also recently sold its online pharmacy Disapo.
In the first nine months of the financial year, the group’s sales increased by 8.7% to around 3.5 billion euros. EBITDA was 657.1 million euros, good for an 11.5% increase and an 18.8% margin. By the end of 2026, Douglas plans to open more than 200 stores and refurbish over 400 more. In September, all the company’s websites, including its online store and apps, will also get a new look.
