Posted By Global Banking and Finance Review
Posted on March 24, 2025
(Reuters) -German beauty retailer Douglas said on Monday it had been surprised by the speed at which the market had deteriorated in the last three months, which caused it to cut its guidance for 2025 on Thursday.
It attributed the downturn to a "very significant" shift in the economy and politics globally that has hit consumers' willingness to spend, especially in its key markets Germany and France, CEO Sander van der Laan told investors on a call.
"It will take a while before we have this behind us," he added.
Weakening demand for personal care and beauty products has weighed on consumer goods companies, with bellwethers such as Procter & Gamble and L'Oreal seen by analysts as better able to cope thanks to broader product ranges, marketing firepower and investments in new products.
In Germany, van der Laan also flagged pressure on Douglas' sales and gross profit in its e-commerce channel from discounts at online perfume retailer Flaconi, which is owned by German media group ProSiebenSat.1.
Douglas said it did not believe its strategy was wrong, but flagged that it needed time to assess the situation and reflect upon its mid-term guidance for 2026 and beyond.
(Reporting by Isabel Demetz and Linda Pasquini in Gdansk. Editing by Jan Harvey and Mark Potter)