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CVC-backed cosmetics retailer Douglas sinks in stock debut

Mar 21, 2024
Perfume bottle

Photo: Daniel Reinhardt/picture alliance via Getty Images.

Douglas, a German cosmetics and perfume retailer owned by CVC Capital Partners, saw its shares fall in their public market debut.

Why it matters: This stands in stark contrast to how global investors treated other IPOs this week.

  • Japanese discount retailer Trial Holdings, which also completed its country's largest 2024 listing, rose 29% in its debut.
  • U.S. chipmaker Astera Labs priced higher than expected and then soared in the aftermarket, while social media company Reddit hit the top of its range.

By the numbers: Douglas raised around €850 in what was Germany's largest IPO so far this year, after pricing at 26 per share (bottom of its range).

  • Shares fell as low as €23.20 in their first trading session.

The big picture: Luxury retail, which saw a pandemic-induced boom, has fallen out of favor as consumers shift spending habits.

  • Shares of France-based Kering plummeted 14% this week after the company warned of a double-digit decline in Gucci sales this quarter.

The bottom line: The IPO valued Douglas at around €2.8 billion, the same amount CVC paid to buy the company in 2015 from its founding family and Advent International.

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