German beauty products retailer Douglas' Q2 core profit hit by weak spending
German premium beauty products retailer Douglas reported a 16% fall in second-quarter adjusted core profit on Thursday, citing continuing weak consumer sentiment.
Its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) dropped to 122.4 million euros (about $137 million) in the quarter, though it came in above analysts' average estimate of 118.5 million euros, according to a consensus compiled by Vara Research.
"The second quarter of 2024/25 was characterized by external factors that contributed to a heightened volatility in macroeconomic conditions and consumer behavior," CEO Sander van der Laan said in a statement.
Van der Laan said there was lower traffic in physical stores and fewer online visits, as weakening demand for personal care and beauty products drags consumer goods companies.
Group sales fell 2% year-on-year to 939 million euros in the quarter, missing analysts' expectations of 946.9 million euros.
Results were also impacted by negative calendar effects, with this year's Easter holiday falling in April and thus delaying sales connected to it to the third quarter, Douglas said.
Despite this, Douglas was able to cut its net loss to 19 million euros from 41.3 million euros in the same period last year, helped by proceeds from its IPO last year and its successful refinancing in 2024.
The German group also confirmed its revised outlook for the financial year and said it will provide a new mid-term guidance with its full year results in December.
The beauty retailer cut its outlook for the current year in March, saying it was "surprised" by the speed at which the European premium beauty market was deteriorating.
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