Germany-headquartered beauty chain retailer Douglas said its business performance in the third quarter of the financial year 2025/2026 was impacted by weak dynamics in Germany, France and the Netherlands as well as by ongoing price competition in the European beauty sector, reflecting the continuously high price sensitivity among consumers.

Sales during the April to June period declined by 2.0% year-on-year to 987.8 million euros and adjusted EBITDA [1] was down 19.4% to 127.5 million euros (adjusted EBITDA margin: 12.9%). Strong growth in Central Eastern Europe (+4.4%) could not offset declining sales in the DACHNL [2] region (-2.8%) and in France (-2.1%), where the group has a presence through the Nocibé brand.

According to Douglas, while the European premium beauty market continues to expand, Germany, France and the Netherlands — which together account for around 60% of the group’s total business — are lagging behind more dynamic markets such as Poland, Spain and Italy. Consumer demand for premium beauty declined year on year in Germany and the Netherlands, while remaining broadly flat in France. By contrast, Central and Eastern Europe continues to be a key growth engine for the Group.

Parfumdreams, the Group’s German online pure-play business, also faced temporary operational constraints during the period. As a result, the Parfumdreams/Niche Beauty segment recorded the steepest sales decline, down 10.4%.

By contrast, e-commerce grew at a double-digit rate in Central and Eastern Europe, Southern Europe and France, where the online channel accounts for up to one-quarter of total sales. According to Douglas, this strong performance highlights both the channel’s growth potential and its accelerating momentum as consumers increasingly shift their shopping online.

In the first nine months of the financial year 2025/2026, omnichannel sales development remained stable overall with an increase of 0.5% to 3.61 billion euros, whilst the adjusted EBITDA declined 9.0% to 577.3 million euros (adjusted EBITDA margin: 16.0%). The company confirmed its guidance for the financial year.

“The competition for share of wallet is fierce,” said Sander van der Laan, CEO of the Douglas Group.

To adapt to changing consumer behavior, the company said it is continuously reviewing its pricing strategy while accelerating its omnichannel transformation. “We are shifting investment focus towards elevating our digital offering and the shopping experience for our customers, while at the same time driving assortment exclusivity and cross-channel services – both of which show significant sales growth,” van der Laan added.

Expecting the balance between store and online sales to shift further in the coming years, the Douglas Group intends to place even greater emphasis on e-commerce.

“This also means that we will be reviewing stores critically with regard to our profitability targets. We will continue to open new locations selectively – particularly in Eastern Europe – and will also keep on modernizing stores in Western Europe. However, especially in the major Western European markets, where the shift towards online has the biggest absolute impact, we will adjust the balance between digital and stationary business even more closely to match prevailing customer footfall,” van der Laan highlighted.