PARIS — Douglas Group, the German omnichannel premium beauty retailer, raised its full-year sales forecast and announced it was selling the Dutch online pharmacy Diaspo.
Douglas said Wednesday it had upped its sales growth forecast to around 8.5 percent from the previously announced approximately 7 percent, due to ongoing positive business development and strong preliminary third-quarter and nine-month sales.
“Industry commentary continues to suggest that Europe remains a bright spot for beauty growth versus a slowing U.S. and anaemic China,” Molly Wylenzek, an equity analyst at Jefferies, said in a research note after Douglas released its trading statement.
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“Scanner data has indicated a minor slowdown in Europe’s mass beauty market driven primarily by pricing rolling off. Today’s pre-release from prestige player Douglas suggests that prestige continues to grow strongly in the region,” she added.
In the third quarter ended June 30, Douglas Group sales rose 7.3 percent, bolstered by both its brick-and-mortar store and e-commerce businesses, which increased 7.2 percent and 7.5 percent, respectively, according to the preliminary figures.
In the first nine months of this year, the company’s sales gained 8.7 percent, with brick-and-mortar stores contributing 8.2 percent and online sellers 9.8 percent.
Douglas Group said it expects its 2024 adjusted earnings before interest, taxes, depreciation and amortization to be significantly higher than in 2023, and that it is on track to reach the target of about 18.5 percent adjusted EBITDA margin in the medium term.
“We are growing stronger than expected and continue to improve our profitability,” Sander van der Laan, chief executive of Douglas Group, said in a statement. “This is exactly how we want to continue.”
Douglas’ full third-quarter financials will be released on Aug. 14.
The group had acquired Diaspo in 2022, as part of its then strategy to enter the pharmacy market and converge beauty and health.
“With its new growth strategy ‘Let it Bloom — Douglas 2026,’ introduced in early 2023, the company has since made the fundamental decision to fully shift the focus on the resilient and strongly growing core premium beauty business across its stationary stores and online shops,” the company said. “As such, the Douglas Group has been evaluating various strategic options for its online pharmacy business, eventually leading to the sale of Diaspo to Mya Health.”
Financial terms of the deal were not disclosed, but Douglas said the due diligence has been completed and that the selling agreement was signed on Tuesday. The transaction is expected to be closed by the end of this month.
“As a result of the sale of its online pharmacy business, the Douglas Group anticipates improvements in its profitability in the future,” it said.
Douglas Group returned to the Frankfurt Stock Exchange in mid-March. Its stock closed Wednesday up 4.4 percent to 18.01 euros.