Douglas AG Stock: Shares Plummet on Slashed Profit Outlook

Douglas AG shares plunged to a record low of €11 on Friday, losing more than 20% of their value in a single trading session, making them the worst performer in Germany's SDAX index. The dramatic decline followed the beauty retailer's unexpected downward revision of its financial forecast announced the previous evening. The company attributed the adjustment to worsening consumer sentiment since mid-February, particularly in its two most crucial markets, Germany and France, which together generate approximately half of Douglas's revenue. The revised guidance projects annual sales of around €4.5 billion, significantly below the previous target of €4.7-4.8 billion. Similarly, adjusted EBITDA expectations were cut to approximately €765 million from the earlier forecast of €855-885 million, while net profit projections fell to €175 million, down from the previously anticipated €225-265 million.

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The profit warning represents the second setback for investors in recent months, following earlier downward adjustments due to disappointing holiday season performance. Since its March 2024 initial public offering at €26 per share, Douglas stock has lost more than half its value, with a 40% decline in the current year alone. The company states it has initiated measures to improve sales trends and secure profitability, including cost reductions in administration and distribution, along with tighter management of working capital and investments. Market experts now anticipate any hopes for dividend payments will likely be delayed until at least 2027, suggesting shareholders may face an extended challenging period.