After a decade-long absence from the stock market, Europe’s leading prestige beauty retailer, Douglas Group, made a disappointing return on Thursday in Frankfurt. The group had priced its initial public offering (IPO) at 26 euros per share on Tuesday, only to see the stock open at 25.50 euros and close at 23.06 euros on Thursday, a significant eleven percent drop from the issue price.
Despite the lackluster stock market debut, Douglas Group remains optimistic about the future. Chief Executive Sander van der Laan stated that the IPO would help reduce the company’s debt and provide financial flexibility for future growth. The Düsseldorf-headquartered company is now valued at around 2.5 billion euros based on the closing price of 23.06 euros.
The group’s owners, CVC Capital Partners and the Kreke family, have committed to injecting around 300 million euros to strengthen the company’s balance sheet. With a focus on online sales and store network expansion, Douglas Group aims to reach 5 billion euros in sales by 2026. The company closed nearly 20% of its stores in 2021 to boost online sales and plans to add over 200 new stores by the end of the 2025/26 financial year.
Despite the disappointing stock market return, Douglas Group remains committed to its growth strategy and is determined to overcome the challenges it faces in the competitive beauty retail industry.
