Douglas GmbH: Standard & Poor’s upgrades DOUGLAS‘ outlook to stable, affirms rating

IR NEWS

Standard & Poor’s upgrades DOUGLAS‘ outlook to stable, affirms rating

• Standard & Poor’s Global Ratings has revised DOUGLAS GmbH’s outlook to stable from negative while affirming the long-term issuer default rating at 'B-'
• Upgraded outlook based on DOUGLAS‘ improving performance due to a substantial recovery in footfall and profitable e-commerce in 2022 and stronger credit metrics
• S&P emphasises that demand for beauty products has been resilient in Eastern Europe, where strong growth suggests that operating performance could improve further

Düsseldorf, 06.07.2023. Rating agency Standard & Poor’s Global Ratings has upgraded the outlook for DOUGLAS GmbH to stable as the operating performance exceeded its expectations in 2022, with record sales of €3.7 billion and stronger margins. Although S&P expects Douglas to sustain these improvements, the effect of inflation on discretionary spending and costs, combined with rising interest rates, could curtail further improvements.

While S&P anticipates that results for the full fiscal year will be in line with trading in the first six months of fiscal 2023, the rating is still constrained by Douglas’ limited capacity to generate positive FOCF after leases, as well as the high leverage. With regard to the economic environment, S&P expects that discretionary spending could be hit by high inflation, but views beauty items as less discretionary. S&P anticipates that customers will cut back their consumption of larger articles, such as washing machines, and more discretionary items, such as clothing, rather than of their beauty products.

ABOUT DOUGLAS

DOUGLAS is Europe’s leading omni-channel beauty destination. We inspire customers to live their own kind of beauty by offering an unparalleled assortment in online stores, via a partner program and in around 1,800 stores. Strengthening our successful omni-channel positioning while consistently developing the customer experience is at the heart of our strategy. In its fiscal year 2021/22, DOUGLAS generated sales of 3.65 billion euros in perfume, decorative cosmetic, skin and hair care nutritional supplements, health care and accessories.

CONTACTS DOUGLAS

INVESTOR RELATIONS

Stefanie Steiner

Head of Investor Relations and M&A

Phone: +49 (0) 211 16847 8594

Email: ir@douglas.de

MEDIA RELATIONS

Peter Wübben

SVP Global Communications & Sustainability

Phone: +49 (0) 211 16847 664

Email: pr@douglas.de