Douglas AG's Reduction of 2024/25 Fiscal Year Forecasts Affects Its Shares

Investing.com -- Douglas AG (XETRA: DOUG) shares declined by 1.2% after the company revised its forecasts for the 2024/25 financial year downward. The beauty retailer lowered its sales forecast from a previous estimate of €4.7-4.8 billion to approximately €4.5 billion, which falls below the current market expectation of €4.73 billion.

In February, when Douglas announced its first-quarter results, it adjusted its EBITDA forecast down to the lower end of the range of €855-885 million. The company now projects a new adjusted EBITDA of around €765 million, representing an 11% decrease from the previous lower limit, while market expectations for adjusted EBITDA stood at €860 million. Additionally, Douglas revised its net profit forecast from a range of €225-265 million to approximately €175 million, significantly lower than analysts' expectations of €246 million. To mitigate the impact of these financial adjustments, Douglas has initiated cost-cutting strategies, focusing on increasing sales, preserving gross margins, and maintaining profitability through various measures.