Strong brand: Stock with a P/E ratio of 7 before a fresh buy signal – bet on the comeback now!

A strong brand is not only important in the consumer goods business, but also plays a crucial role on the stock market. Brand names build trust, evoke emotions, and ensure long-term customer loyalty—factors that can ultimately be reflected in sales, profits, and thus in rising share prices. Especially if the stock is also attractively valued.

Almost everyone has heard the name before: Douglas is Europe's leading perfumery chain and has stood for beauty and care for decades. In addition to well-known brands, Douglas also offers private labels and exclusive collaborations that secure additional margin advantages and strengthen customer loyalty. In recent years, the group has also successfully evolved from a traditional retailer to an omnichannel provider. The interplay of brick-and-mortar stores and an attractive online offering provides the company with a broad customer base and a high degree of flexibility.

This is also reflected in the current figures: Douglas's recently presented results for the third quarter of 2024/25 performed significantly better than expected. From April to June, group sales increased by 3.2 percent to €1.0 billion. Operating profit (EBITDA) increased by 1.4 percent to €154.6 million. Net profit jumped to €17.3 million, compared to a loss of €71.6 million in the previous year. The lower interest expenses due to refinancing following the renewed IPO in 2024 had a positive impact here.

"After a weaker second quarter, we're back on track for growth," said CEO Sander van der Laan. "We're keeping costs under control and consistently driving forward strategic projects such as expanding our brand, our supply chain, and our IT capabilities."

After nine months, sales increased by 2.9 percent to €3.6 billion and the EBITDA margin reached 17.4 percent. Net profit climbed from around €12 million to over €161 million. The annual forecast has therefore been confirmed. For the full year 2024/25, Europe's leading beauty and perfumery group now expects sales of just over €4.5 billion (previously: around €4.5 billion) and an EBITDA margin of around 17 percent. With net profit of around €175 million, the share, with a P/E ratio of 7, would be anything but expensive, especially considering further increases in sales and profits in the coming year.

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Note on conflicts of interest: Douglas shares are held in a real depot of Börsenmedien AG.