Ladies and gentlemen, welcome to the DOUGLAS Group Q3 2025/2026 Earnings Results Conference Call. I am Matilde, the conference call operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Sander van der Laan, CEO. Please go ahead. Yes, thank you very much and good morning, everybody, on the 12th of August. Another hot day ahead of us. We are here today to give you an update on our third quarter results, which I will do as normal together with Marco, our Group CFO. This morning we have also released, let us say, our press release. As most of you have read, we have to report a relatively weak quarter, which was impacted by the weak dynamics in especially our largest markets, Germany, France, and the Netherlands, which collectively account for 60% of our sales. In those markets, Germany, the market has declined, the French market was flat, and also the Dutch market, premium beauty market, has declined. That has led to, let us say, results which are below expectations, where we also see that customers are very receptive to price. Certainly online, there is a significant price competition because pricing is much more transparent and customers generally lack the confidence, or the consumer confidence is at a very low point in many markets, in the lowest point ever. Although more recently, it looks like that this is bottoming out. This has led to a sales decline in both channels, with a negative sales in the stores of 2.5% and a negative sales in the e-com channel of -1%. If you would separate Parfumdreams and Niche Beauty, which are our pure-play brands from the e-com channel, then for the DOUGLAS Nocibé e-com business, we can report a slight positive number. When you look to the omnichannel number for the full company, we have to report a -2%, which led to almost EUR 988 million of sales. With an adjusted EBITDA of 127.5, which is a margin of 12.9%, and net income of -2.6, and a net leverage of 3.1. Our debt position is actually developing positively, but since it is debt divided by EBITDA and the EBITDA has declined, our leverage has moved to 3.1. The pre-IFRS 16 leverage is actually at a very, I would say, healthy level of 2.2. That is basically the summary of our results. Looking on the next page, I was already alluding to that. If you look to the selective beauty market in continental Europe, I am saying continental Europe because we do not operate in neither the Nordics nor in the U.K. We do see that in the continental Europe, the market is growing. We only have market data for eight or nine countries out of the 22 countries where we operate. But if we look at the data and we look at the developments, then we do see that the premium market is growing. However, it is gro wing in those markets where we are at a relatively smaller position. Because in Germany, the Netherlands, and in France, which account for 60% of the business, those three markets together had a decline in the third quarter. In Southern Europe, Italy, Spain, Portugal, and in Central Europe, the market has been growing. In Central Europe, we have a strong position. But in Southern Europe, we have a strong position in Italy. We have a very, let's say, small position in Spain, which is a big market, and we do not benefit from the developments over there. Consumers are increasingly focused on price and value. That is, by the way, not specific for selective beauty. You could basically say that for retail in general, there is a significant more focus on pricing and value as a result of the uncertainty in the world, both economically, but also from a social perspective. What we also see, that within this market, which is growing, that the store channel in general is under pressure. So in most countries, we have seen declining traffic in the store channel in general. I do not mean specifically DOUGLAS. As a result of that, w e do see that the store channel sales in many countries has declined versus the prior year. On the flip side, we do see that the e-com channel in many markets is more dynamic. But as I just said, there is more pricing competition in there. So the ability to realize a, I would say, a healthy growth profit is more challenging. That is basically a perspective on the market developments. Translating it to, okay, what does it mean for DOUGLAS on the next page? We have adjusted our guidance for the current financial year on June 18. Today, reflecting on the market and our current performance and our expectation for the current quarter, the fourth quarter, we are basically reconfirming our guidance. Hence, we expect that our sales will end up between, well you can see the range between EUR 4.58 billion-EUR 4.63 billion, which means that we expect a full year sales growth between 0 and 1%. An adjusted EBITDA margin of around 15% and a net leverage between 3 and 3.5 times is our expecta tion for the full year, and we have no reason to adjust that since June 18. With that, I'm handing over to Marco, who will give an update on the financials, and then I will later come back to give a few updates on strategic developments and core initiatives. Marco? Thank you. Thank you, Sander. Let me now talk about our financials for the third quarter of the financial year. In Q3, Group sales declined by 2% year-on-year to EUR 988 million, and on a like-for-like basis, sales were down 4.5%, reflecting continued consumer caution, heightened price sensitivity across our markets, as well as adverse weather conditions, including heatwaves in several regions, which negatively impacted store footfall. Moreover, the year-on-year comparison was slightly affected by Easter timing, as Easter-related trading was partially sitting in March this year versus fully in April last year. From a regional perspective, the decline was primarily driven by DACH, NL, SE, France, and Parfumdreams/Niche Beauty, while Central Eastern Europe remained resilient and continued to grow. On profitability, adjusted EBITDA decreased by 19.4% to EUR 128 million, corresponding to a margin of 12.9%, compared to 15.7% in the prior year. The main driver was pressure on gross margin, as promotional intensity remained elevated. Despite we maintain a strict cost control, the benefits from these measures were more than offset by higher personal expenses related to a store expansion of the last 12 months in wage inflation. Looking at the channel performance, store sales declined by 2.5% to EUR 661 million, corresponding to a like-for-like decrease of 6.5%. Lower traffic and softer conversion rates continued to weigh on performance. E-commerce sales proved more resilient, declining by just 1% to EUR 327 million. When we focus on DOUGLAS and Nocibé only, i.e., excludin g Parfumdreams and Niche Beauty, e-com sales actually grew 0.6%, confirming the stronger performance in the premium positioning. Growth in cross-channel services, which increased by 18% versus prior year, partially offset lower online order volumes. At the same time, the DOUGLAS app continued to gain relevance, accounting for 43% of e-commerce sales, up from 40% in the prior year. In addition, our retail media business continued its strong momentum, growing by 24% year-on-year, reflecting the increasing attractiveness of the DOUGLAS platform for brand partners and the strength of our customer reach and engagement. Cross-channel services now account for approximately 6% of Group sales, up around one percentage point versus last year. This trend is particularly important as it shows that more customers are engaging with the DOUGLAS ecosystem across multiple touchpoints. These customers tend to be more loyal, spend more over time, and generate higher lifetime value, underlining the strategic importance of our omnichannel proposition. Overall, while consumer demand remains subdued across channels, the continued adoption of cross-channel services and the growing importance of the app demonstrate the strength of our integrated omnichannel model and support customer engagement across the system. For example, in Germany, we have a ROPO effect of 25%, meaning that 25% of our store's customers research online before they buy offline. Across markets, trading remained impacted by lower traffic and weaker conversion rates, resulting in negative sales growth in most regions. Profitability development across most markets reflected ongoing gross margin pressure, driven primarily by mix effects and the promotional trading environment, negative store like-for-like, creating an adverse operating leverage effect, and the ramp-up in performance of newly opened stores. CEE continued to stand out, delivering 4.4% sales growth while maintaining a strong adjusted EBITDA margin of 21.6%, demonstrating the attractiveness of the region and supporting overall group profitability, as well as the possibility to sustain margins with a positive top-line growth. DACH, NL, France, and SE saw more moderate sales declines, while Parfumdreams/Niche Beauty remained affected by a challenging competitive online environment and the repositioning of the business following the 11 Accentra store closures. Looking at gross profit. Gross profit decreased from EUR 457 million to EUR 436 million, resulting in a gross margin decline of around 110 basis points to 44.2%, primarily driven by price, promotional effects, and mix from a category and brand perspective. Lower volumes added further pressure on gross profit, while supply contributions remained slightly below prior year level. Moving on to operating expenses. Overall net operating expenses increased by 3% year-on-year from EUR 299 million to EUR 309 million. This was primarily driven by higher staff costs, while other net operating expenses increased only by 1.8%, mainly driven by continued IT investments. Starting with the staff costs, the increase was mainly driven by the expansion of our store network over the last 12 months. In addition, wage inflation across European markets led to higher personal expenses. As a result, coupled with the negative like-for-like in the stores, the staff cost to revenue ratio increased year-on-year. We are actively addressing this through several measures, including adjusting working hours in the stores with lower footfall, implementing temporary personnel cost reductions, and continuously optimizing our store network. These initiatives are aimed at improving productivity while maintaining a high-quality customer experience. Looking at other network operating expenses, marketing efficiency continued to improve, resulting in a lower marketing cost to revenue ratio. Property cost, excluding rent, remained stable, reflecting our disciplined cost management approach. IT costs as a percentage of sales slightly increased, reflecting continued investments in our technology platform and infrastructure. For example, during the quarter, we went live with our latest digital commerce platform in Romania, marking another step of progress in harmonizing and upgrading our architecture across Europe. Finally, delivery costs remain broadly stable year-on-year. When looking at the store perimeter, like-for-like stores perimeter costs were slightly below last year, confirming the continued attention to cost development, but the negative sales like-for-like and the gross margin investments led to a bottom-line dilution in margins. Overall, the increase in net operating expenses was driven by higher staff costs related to network expansion and wage inflation, as well as continued IT investments, while other operating cost categories remain well managed. As already pointed out, lower sales and gross margin pressure weighed on profitability. Despite continued cost discipline, adjusted EBITDA declined by 19% to EUR 127.5 million, with the margin at 12.9%. Below EBITDA, depreciation and amortization increased to EUR 98.1 million from EUR 92.7 million in the previous year on an adjusted basis. Reflecting investments made in the previous periods in our store network refurbishment as well as technology infrastructure. You may notice that reported EBITDA is slightly higher than adjusted EBITDA, and this is due to the adjusted gains from the sale of certain real estate assets in the Netherlands, bringing in a capital gain of approximately EUR 6 million in net of roughly EUR 9 million. Adjusted EBIT declined to EUR 29.4 million, compared to EUR 65.5 million in the prior year quarter. The financial results developed positively, improving by 13.3% year-on-year from negative EUR 32.9 million to negative EUR 28.9 million, supported by slightly lower interest expenses and favorable effects development. On taxes, we expect the full year effective tax rate on an adjusted basis to be at around 32%. This is slightly higher than the expectation at the beginning of the year, mainly as a result of lower earnings, leading to a greater impact of nondeductible items on the taxable income. On a reported basis, the effective tax rate will look higher due to the non-deductibility of the goodwill impairments we took last quarter. Overall, the quarter reflects a challenging trading environment, lower gross margins, and the result impact on operating leverage weighed on profitability, leading to adjusted net income of negative EUR 3.8 million compared to positive EUR 24.1 million in the prior year period. We made further progress on capital efficiency during the quarter. Average net working capital declined by 27% year-on-year to EUR 166 million, equivalent to 3.6% of sales, compared to 5% in the previous year, driven by continued inventory and supply chain initiatives. Average LTM networking capital calculation benefits from a full year effect of the supply chain financing utilization that is, however, stable on a year-on-year basis at roughly EUR 135 million. The underlying inventory performance shows a slight increase in DIO from 122 to 125 days, mainly as a result of the lower sales in the quarter despite the larger store network footprint, leading to increased stocks compared to last year. At the same time, CapEx decreased by almost 30% to EUR 31 million, reflecting a more targeted investment approach while continuing to support strategic priorities, including selective store modernization, digital capabilities, and supply chain infrastructure. We expect CapEx to be around EUR 130 million this year, slightly lower than our initial assumption, reflecting the updated market conditions, in particular of the store chain. This includes a more targeted approach to our store network, combining selective openings and refurbishments with dedicated store closures when returns are no longer meeting our requirements. In fact, in the first nine months, we closed 31 own stores, compared to 12 in the year before. As a result, capital is being relocated toward higher returning opportunities across our omnichannel system, and these investments support cross-channel integration, scalability, productivity, and customer experience while requiring significantly lower capital intensity than a traditional physical expansion. However, such investments are often shifting to operating expenses in the SGA part of the P&L, especially when referring to software, as commented earlier, which is important to safeguard cash flow generation. Adjusted free cash flow amounted to EUR 406 million, corresponding to a cash conversion of around 70%. After cash EBITDA adjustments of EUR 6 million, reported free cash flow reached EUR 399 million, and after lease payments of EUR 251 million, free cash flow amounted to EUR 148 million. A year-on-year decline in free cash flow is primarily driven by the lower earnings contribution, reflecting the softer trading environment and lower profitability compared to the prior year. This impact was partially offset by reduced CapEx as we continue to prioritize investment discipline and relocate capital toward the highest return opportunities across our omnichannel ecosystem. Property rents show an increase year-on-year, mainly linked to the store and warehouse openings of the last year, and this development will naturally stabilize with the normalization of the network evolution in the future. Net financial debt decreased from EUR 924 million to EUR 863 million on a year-on-year basis. More than offset, however, by higher lease liabilities resulting from new store openings and lease extensions. As a result, reported net leverage increased to 3.1 times from 2.7 times, driven by the higher lease liabilities and, as Sander mentioned earlier, the lower EBITDA in the denominator. While pre-IFRS 16 leverage stood at 2.2 times. De-leverage remains a key capital allocation priority for us. Now, concluding, let me remind a brief summary of our year-to-date performance. Our nine months results were challenging, but provide a solid foundation towards achieving our 2026 updated guidance, with sales and profitability developing in line with our expectations. Omnichannel execution continues to be a key growth driver, supporting customer engagement and reinforcing our market position across channels. At the same time, our continued focus stays on operational excellence, disciplined cost management, and working capital, supports earning quality, strong cash generation, and de-leveraging. Based on our performance in the first nine months and our expectations of the fourth, we confirm our fiscal 2025, 2026 guidance, as previously mentioned by Sander, and we continue to expect net sales to sit in the range of EUR 4.58 billion-EUR 4.63 billion, corresponding to a growth of 0%-1%, and an adjusted EBITDA margin of around 15%, and leverage guidance, we confirm our target of 3%-3.5% range. With this, I hand over back to Sander for the remaining of the presentation. Yes, Marco, thank you very much. I wanted to provide a brief update on the strategic direction, and I wanted to come back on some examples of key initiatives which we have deployed in the, let's say, in the recent quarter or in the current quarter. Earlier this year, before the summer, I had already shared with you that we have done a strategic exercise where we have reflected on our performance or the development in the markets and our expectations in the markets, and we have looked again at our own kind of strategic priorities going forward. That has led to, let's say, an evolution of our strategy. Fundamentally, we still believe that the three commercial pillars to be the number one premium destination in all markets. Number two, to offer the most relevant assortment with clear differentiation. And number three, to scale the most seamless omnichannel experience. We believe that the combination of these three pillars is creating a competitive customer proposition, which will allow us to grow and allow us to create value, let's say, in the markets where we currently operate. That should be based on a foundation where we are building a united future-proof foundation for sustainable and profitable growth going forward. On this page, not a lot actually changed in the exercise which we did before the summer. Maybe the most important words what we added to this page is with clear differentiation. Because we do see with the development on the online side and the fact that a number of the premium beauty brands have authorized, let's say, two players as well, that it is important to strengthen the differentiation dimension in DOUGLAS, and especially to work on those brands which are unique to DOUGLAS, either corporate brands and/or exclusion brands. So differentiation is a key strategic lever going forward. We have translated these three pillars and this foundation in 21 key result areas, priorities. And we have basically created an acronym for each of them, brave, clear, scale, and united, to make it a bit more memorable, not only for you, but also internally in the organization while we are working on this with our, let's say, 18,000, 19,000 people. And today, I wanted to give you a slight update on those ones which are not hidden. So let me not walk through them, because in the examples which I will give in the next few pages, I will come back on all of them. But for each of those key result areas, we have developed a plan. We have a team in place. We have somebody who owns that, and we are working with a long term, midterm, and short term perspective on each of them to basically deploy our strategy. We have also decided that it would be good to go a bit more in-depth into the evolution of our strategy, and we believe that a quarterly update is not the proper kind of environment. So we are planning, let's say, a moment in the fourth quarter of the calendar year, so basically between October and Christmas, quite likely not in the December month. But we will come back to you with more details on the evolution of our Let it Bloom strategy, where we intend to go deeper into a number of the priorities, and also with a longer term perspective. So we owe you that, and we will get back to you. Today, I wanted to highlight a few initiatives where we have done and delivered a number of visible results, either towards our customers or from an internal build organizational perspective in order to build our foundation. So the first one is about the first pillar, which is about to develop the number one position from an omnichannel perspective. We see that social media and social commerce becomes more and more important, not only in the daily life of our customers and citizens, but also in developing premium beauty brands and launching brands, and also growing the sales. We see a significant step up within our organization in terms of leveraging the brand power of DOUGLAS and Nocibé. We do see that together with social media, but also with creative partnerships and with influencers that we can really drive visibility and convert engagement towards certain brands, into tangible sales for DOUGLAS. Therefore, we also are not only measuring it internally, but also we are sharing with you externally that our social media and social commerce sales is significantly growing. The absolute numbers are still relatively small, but the growth is certainly there. By the way, the growth rates are quite different between the different markets, because in the German market, for instance, we are more advanced in the social media domain versus in certain Central Eastern Europe markets, but we see a positive development across the group, and there is more in the pipeline, and that is one of the areas where we would like to come back on in the fourth quarter of this year. That is basically initiative one. Initiative two is everything about our assortments. Like I said, we are historically focused on selective brands, Chanel, Dior, Shiseido, Tom Ford, Lancôme, Yves Saint Laurent, et cetera. But within those selective brands, we are focusing more and more on exclusive brands. These are brands which are exclusively being sold by DOUGLAS, either in all our markets or in a number of our markets. So we have so-called group exclusivities, but we also have cluster exclusivities. LolaVie is the brand with Jennifer Aniston as kind of the brand personality. Morphe and makeup brands, About-Face and makeup brands. Each of those brands are exclusive to DOUGLAS across all our markets. We started this year with Balmain. That is a brand owned by Estée Lauder, where we have signed an exclusive agreement to basically develop Balmain in the fragrance market across all our markets, and these brands are doing very well. Fenty Beauty is an example of a cluster-specific brand. So in the Netherlands and in Belgium, we have an exclusivity agreement with the brand owner. In Germany, there is only one alternative player offering this brand, which is a French competitor, but that French competitor has a relatively small footprint in Germany. Hence, we also have the opportunity to develop the brands. Orebella is an exclusive across all markets brands for DOUGLAS, again, in the fragrance category. We really see, and we have showed it to you before, that our exclusive brand sale is really getting traction. So today it is 9% of sales. It has grown in this quarter with 14.7%. So basically, if you simplify it has grown from 8% to 9%. With these 9% of sales, we are unique. That means that we have an omnichannel pricing. That also means that we do not have price competition because others are not selling it. That is basically building a USP, and it is also building, let us say, protecting a part of our growth profit going forward. So exclusive brands, very important pillar, a key result area to drive differentiation. The third thing I want to share with you is that also with selective brands, we have, let's say, winners and losers. Despite the fact that the market is, let's say, in our most important countries, not growing or actually slightly negative, when we talk about Germany, and more negative when we talk about the Netherlands, we do see a number of winning brands across, I would say, the four core beauty categories. In fragrance, Prada, Balmain, Carolina Herrera are clear winners. In skincare, Rituals, Beauty of Joseon, and Erborian, K-beauty brands, two K-beauty brands. Morphe, Charlotte Tilbury, About-Face, Kérastase, LolaVie, and milk_shake are developing very positively. There are winners and losers across all these categories. What is new in terms of transparency towards you on the next page, because we have so far never disclosed our sales performance by category. This is the first time that we share with you our sales development in the respective categories. Keep in mind, we have four core beauty categories, actually five. Fragrance, skin, makeup, hair care, and accessories. Fragrance is roughly 50% of the sales. Skincare and makeup, roughly 20% of the sales. Hair care, a strong runner-up for 5% of sales, and accessories is actually 1% or 2% of sales. What you can see that in our biggest category, fragrance, that we are down 3.4%. That we are down 4.2% in skincare. We are up 1.7% in makeup. We are up 18% in hair care, and we are down 7.8% in accessories. The core challenge for DOUGLAS is we feel pressure in three big markets, Germany, France, and the Netherlands, and we feel sales pressure in our number one category, fragrance. The combination of that is clearly leading to the top line pressure as we currently experiencing it. I also showed to you on the slide before that within those categories which have declined, there are brands strongly growing, but that is not offsetting the decline of other brands. It is a mixed, let's say, you could say, a mixed performance across these different categories. On the next page, we want to show you an example, or the next two pages, actually, of our desire to build a seamless omnichannel customer journey. What we do see is a strong growth of our cross-channel services, which underscores, we believe, the attractiveness of the omnichannel model and also the desire of customers to really shop omnichannel. Be aware, in the vast majority of the shopping trips, a brick-and-mortar store still plays a very important role. The pure-play only trips is a significantly smaller percentage of, let's say, customer behavior until now. We are currently offering four different omnichannel services. The first one is click and collect. A customer goes to our website, shops online in the assortment which we have available in our warehouse, and within a few days, that product can be click and collected either from a store or from a pickup point, or in some cases, from another retailer. Click and collect is growing 4.1%, sits in our e-commerce sales. The second service which we offer is click and collect express. A customer goes to the website, selects a store, and can shop within the assortment of that store. An average store of DOUGLAS has somewhere between 6,000 and 11,000 SKUs. The warehouse in Germany carries 60,000, 70,000 SKUs, so the customer here can shop in a smaller portion of our assortment. But the benefit is the customer can pick up the article within two to three hours from the store of his or her choice. We do see a significant increase of the sales. There are two drivers for that. T he first driver is we didn't have the service, or we don't have the service yet in all the markets. So we're rolling out. It shows that there is basically, you could say, an expansion dimension. But secondly, we also see a like-for-like expansion development. These sales is also being reported within e-com. You could debate, should we report it in the store channel or should we report it in the e-com channel, because both channels actually play a role. Ultimately, you do the transaction, let's say, in the store because that's where you pick it up. But we just decided to report it in the e-com channel. If we would've swapped it to the store channel, clearly e-com sales would grow less and store sales would grow more. The third part is in-store orders. A customer goes to a store and wants to buy an article which maybe is not available in the store because we only have 6,000 to 11,000 articles, or one of those articles is out of stock. Then the customer can order it in store, and then get it home delivered, or also pick it up in that store or another store. The last service, which we are now starting to pilot, is click and return. You've bought something, you're not happy with it, and you can return it to a store. The combination of all these services is growing 18.2%, and it's 6.6% of our sales. So again, it was 5% of our sales. It's now 6% of our sales, and the pure players can't offer kind of these services. So another, I would say, example of the differentiation and developing very positively. Moving to basically the next initiatives is focusing on omnichannel and e-com. We are accelerating our e-commerce transformation, our omnichannel transformation, with an increased focus on e-com to reflect the preferences of our customers. In June 2026, we've launched an AI Beauty Advisor ANNA in our German app and our German online store, where basically, a customer can talk with this advisor, communicate with this advisor, and our AI advisor is giving, let's say, personalized advice and also personalized beauty recommendations. Obviously, also making recommendations with products and brands which we offer and which we sell. So there's a request from the customer or a problem or a demand, and we try to cater towards that demand by making a tailor-made advice and hopefully, also sales transaction. As I already said earlier, the stores remain a crucial pillar of our omnichannel model, because you can see it on the top right, in 75% of all the customer journeys, the store is still playing a role. Despite that strong, I would say, new speed, we cannot deny that the store channel in beauty in general is under pressure, and that also our like-for-like sales is under pressure. That has led to the conclusion that we have decided to review our store network across the entire company, and that we are not only, let's say, looking from the one end for opportunities to remodel, expand, or relocate existing stores, but we are also reviewing stores which are below a certain profitability, either because the store is underperforming or because the store sits in an area which is basically under pressure. That network review will certainly lead, let's say, to optimization efforts of our store network in a number of specific countries. It is too early to communicate specific conclusions on that because we are still working on that. Clearly, there are landlords, store management, employees involved, so we want to do this properly before we are becoming more transparent on it. In the current quarter, we have opened 15 stores. We have also closed, in the current quarter, 19 stores. 19 stores is a relatively big number because this was the quarter where we closed almost half of the Accentra store network. If I say correctly, nine o r 11. So 11 stores we closed out of the 19 are Accentra stores. So these are, let's say, stores in Germany. So you could say our regular closing was 8, which is not a kind of strange number. We have, in this quarter, refurbished, including relocations, 19 stores, which means that we ended the quarter with 1,967 stores. On the next page, building a solid foundation. Our supply chain transformation is well underway. We also informed you already a few quarters ago that we have opened a NOWAC, an OWAC for the north part of Central Eastern Europe. That is a warehouse in Poland. That warehouse has successfully started to supply our Polish stores and our Polish e-commerce customers. Since a few weeks, we have also connected this NOWAC warehouse to Czech and Slovakia. So we have now closed our online warehouses in Czech and Slovakia. We have closed our cross-docking facility in Czech and Slovakia, and we are supplying these two countries from this warehouse. In the next few weeks, we will also do the same with Hungary. So that means that in a few weeks from now, the NOWAC is supplying four countries with the plan to connect them to the Baltic countries, Czech, Estonia, Latvia, Lithuania in 2027. With that, our NOWAC implementation will be complete basically in the year ahead of us. In addition to that, our service provider has implemented a new warehouse management program, management system into the warehouse, and we have also automated the warehouse in recent weeks. Automation often comes with some turmoil. We also have to admit that for at least four to six weeks. We had a significant implication on our service levels towards our customers, in this case, in Poland, which has certainly impacted our sales development in the month of June. It has also impacted the sales development in Poland in the month of July. As we speak now, we have the situation under control. Service level towards stores are at the required levels. In the e-com channel, we are still slightly behind, but we are rapidly catching up. In the month of August, we are now in August, we will open our. Actually, we have opened our BeNe OWAC. This week, we have delivered the first stores from our newly developed warehouse in the Netherlands. In the next few weeks, we will ramp up from a handful of stores to all the stores in Belgium and the Netherlands. In calendar Q1 2027, we will migrate also the e-com parts. For the rest of this quarter, stores will be done by the BeNe OWAC in Belgium and the Netherlands, and the online customers will be done still by our legacy facility in early 2027. We will close this old facility and also integrate them into this new OWAC warehouse. That means that we will then have six or seven OWACs in operation. One to go. The final one is called the SOWAC. That is the OWAC supporting the south part of CEE for the Balkan countries, i.e., for Bulgaria and Romania. That will be a much smaller OWAC because our volume is smaller. We intend to open this OWAC in Romania, quite close to Bucharest, and we are currently finalizing a tender. Actually, I think that this week we will communicate our preferred partner of choice. The intention will be that roughly one year from today, this OWAC, SOWAC, it is an OWAC in the south, will also be operational. A lot of developments on the supply chain side. Then basically in five years, we migrated from a legacy supply chain, where each country had their own supply chain, and we had duplicated between online and offline to seven omni-channel warehouses, one warehouse, one stock, supporting 22 different countries. The last point I wanted to talk about is about the technology part, because we continue to make progress in harmonizing our infrastructure. In this case, we talk about the IT infrastructure. Marco was already mentioning an example of the launch of our e-com platform in Romania. That means that as we speak, we have the same e-com platform active in 14 of our countries. Basically, all our big countries and only the small countries are on the to-do list. Klarna is currently supporting 13 markets, and Adyen is currently supporting 17 countries. Two years ago, every country had its own online payment provider. Basically, we had 22 different payment providers. Currently, Adyen is our preferred provider, doing 17 countries, and a few are still to come. A lot of rationalization, simplification, and standardization in the back office of, I would say, of DOUGLAS. With that, I wanted to summarize basically our presentation for today. Firstly, the premium beauty markets has significantly slowed down in terms of growth versus what we saw three, four years ago. It also slowed down much faster than we had expected. We had expected a market which would grow 4%, 5%, 6%, but the reality is that the market in continental Europe is growing 2%-3%. It is not growing in our most important or biggest countries, Germany and France. The Netherlands is not the biggest country, but it is a relevant country, and it weighs heavy on our performance. Secondly, we do see a continued consumer price sensitivity and a desire of customers to buy products at a discount. I haven't said it before in this meeting, but we are not actively promoting more. Customer is actively seeking more promotional deals, and that leads to pressure on our growth profits. In addition to that, we see an acceleration of the online channel where the competitive price is just one click away. That puts more, I would say, focus on pricing going forward. We are making adjustments to align our business even more closely with the development at both customer and market level, with an increased focus on e-com and a stricter assessment of the profitability of our store network, and that will lead to a number of conclusions and decisions. We are focusing on what differentiates us. Exclusive brands, cross-channel services are two examples where we're giving you some insights. We have a lot of brands which are growing. We are growing strongly in retail media, but today we didn't give you too much insight in that. We are positioning the DOUGLAS for the future with the plan to do a further update on the evolution of our Let it Bloom strategy in the fourth quarter of the calendar year 2026. Last but not least, we are confirming the full-year guidance for the current financial year. With that, I wanted to pause, and we would like to move to Q&A. Operator, please take it from here. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on a touch-tone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only handsets while. Anyone who has a question may press star and one at this time. The first question comes from the line from Vandita Sood from Citi. Please go ahead. Morning. Thank you for the presentation. I just had two questions, please. Firstly is on the guidance. You've reiterated the guidance, but if I work out the midpoint, it's pointing to a positive sales development in Q4 and at the midpoint of the adjusted EBITDA, it's maybe slightly ahead of where consensus is at the moment for the fourth quarter. Just want to check, is this something that's based off of what you're seeing currently as of July and start of August, or is there not that much to read into it and it's within range, so you're happy with the range? Then the second question, we've talked a lot about how important the assortment is and branding, of course, that's key. I just wondered where you benchmark your delivery proposition as more and more pure plays are coming into the market. Are you happy with the cutoff time for next day delivery orders? Are you competitive in terms of the convenience of the online proposition that you have? Just curious for your thoughts there. Thank you. Okay. Hi Vandita. Good morning. Thanks for the questions. I'll take the first one on guidance, and then Sander will take the second one on the assortment and the rest. We updated our short-term guidance in mid of June, pointing now to a much narrower range, let's say 0%-1% of growth. Of course, at the time, we had the benefit of the knowledge of well into Q4 expectation performance. By the way, when you work out in your math, it's a continuation of Q3 into Q4. You're also all within the ranges of the guidance and get to the lower end of that at the same time. Let's say to your question, we feel comfortable with the range as it stands now, as well as with the consensus where it sits. Therefore, we don't feel needs of updating it any further as of today. That's for the top line and also for the profitability percentage. In the last closing quarter, we reported a profitability reduction at the adjusted EBITDA level of around 280 basis points. Again, working out the math into Q4, a comparable year-on-year decline into Q4 still b asically would lead you to the around 15% for the full year. Basically, hence our reasoning on the confirmation of the guidance today. I would give to Sander the answer to the second question, if that's answering your question, Vandita. Yes. Thank you. Okay. Thank you, Marco. Vandita, regarding the e-com delivery proposition, generally, we believe, we know that we are competitive versus, let's say, the beauty players, in terms of omnichannel beauty players or pure play beauty players. We have the ambition to deliver in maximum two working days, and with that, we are delivering that in many of our markets, but not yet in all our markets. In some markets like the Netherlands, if you order before 7:00 today, in principle, you get it tomorrow. The delivery basically window is 24 hours. In Germany, a significant portion of our orders is being delivered on the second day rather than the first day. We continue to work to shorten those lead time and the deployment, the implementation of our OWACs is going to help us with that. Secondly, what we can offer is click and collect, click and collect in our store network and click and collect in express. We believe that we are competitive, and we have something unique to offer, certainly towards some of the pure players. Thirdly, from a cost perspective, we also believe that we are competitive. Below a certain price, you have to pay a small delivery fee, above a certain spend, you get it for free. We are also competitive with that. In that sense, we believe that we are in an okay place, but we see opportunities to further improve our competitiveness going forward. Is that answering your question, Vandita? Yeah. That is very clear. Thank you. It was just on the basis of, obviously, if you look at som ething like an Amazon, it is just a 10:00 P.M., 11:00 P.M. cutoff time. Yeah, no, it is clear that there are pros and cons. Thank you. Okay. You are welcome. Jürgen, go ahead. As a reminder, if you wish to register for a question, please press star and one on your telephone. My next question comes from the line of Jürgen Kolb from Kepler Cheuvreux. Please go ahead. Fantastic. Thank you very much indeed. The first one is, Sander, I think you mentioned in your prepared remarks on your new strategy that you obviously analyzed the market. I was wondering if you could share maybe some of your findings, especially when it comes to the competition. I remember in one of the previous calls many moons ago, you indicated that this fierce price competition, triggered by Flaconi and Notino, that they cannot sustain that pressure for long. I was wondering if you have any findings, any ideas as to how they can really continue with this very aggressive pricing, because it looks a little bit odd that you guys who have retail media, who have other levers of profitability that they can still maintain this aggressiveness in the marketplace. That is the first one. Second one, you mentioned the store network review. Any idea or any indication as to how many stores we are actually talking about that are loss-making, or maybe could even fall into the criteria to be closed, just roughly? I know no details. The third point is, maybe if you have some comments on the different profitability levers of selective brands, exclusive brands, cluster brands. Obviously, there is some difference, but I am not quite sure how much you want to talk about it, but at least some indications where the attractiveness is, besides obviously the fact that you are unique from the offer perspective. Thanks very much, guys. Yeah. I would propose, Marco, that I will take the first question, and that you will take the question on the store profitability and the profit of the different brand segments. Jürgen, when you look at the competition, I can easily talk about it for a long time, but I do not want to do that. First of all, we do see that the developments in the markets and certainly the pressure on the store channel is leading to activity in the markets. Last, earlier this year, one of our regional competitors basically went into administration and subsequently rationalized the store network and has then subsequently been taken over by a French beauty company. We have also noted that Marionnaud, not so long ago, the number two in France. Now after Nocibé, the number three in France, has apparently made a deal with a French beauty entrepreneur as well. They are changing from one company to the other company. We also know there are quite some stationary focused businesses either under pressure or for sale, because we are often being confronted or being offered some of those businesses. We can see in the store channel that the pressure in the market is leading to dynamic developments. If you look on the e-com side, there is, you could say, a consolidation taking place. There are a h an dful of competitors who are aggressive in terms of price, who have gained share over the past, not only the past few years, but also in the current financial year. Those competitors are much more aggressive with price. Those competitors do not have neither the opportunity nor the burden of having a store network. Because when we are pricing our products, we always need to keep in mind that we have an omnichannel proposition, and it makes it sometimes more complicated. That is also why we are focusing so heavily on these USPs, on exclusive brands, on corporate brands, where we do not have this kind of direct price competition. On the e-com side, and you mentioned a few competitors. I prefer not to mention them specifically by name, but we indeed have doubts whether those pricing levels are sustainable. It is certainly not healthy for the category, and it is also certainly not healthy for the brands, but we have to deal with it. Having said that, we are also actively looking at our pricing strategy going forward, because with the developments in the markets and also the development at customer level, and the developments of our sales, we cannot deny that we need to work on the competitiveness of our proposition, and pricing is playing an important role in that going forward. With that, Marco, I am handing over to you. Yeah. Thanks, Sander. Hi, Jürgen. So on yo ur two questions, I will start with the stores. So first of all, we should bear in mind that despite having a large store network footprint, we have a profitable store network footprint, and we do, let us say, suffer in the recent quarters by negative like for likes, which unavoidably have an impact on, let us say, the single channel profitability, because despite we implement several efforts to safeguard costs in the stores, and I give you an example, the like-for-like year-to-date store costs are stable or slightly down compared to last year. However, year to date, the like-for-like of the stores is minus 4%, as you could see today. So, obviously with also pressure on the margins in terms of gross profit margins, it is inevitable that the relative profitability has gone slightly down. This creates a situation in which still, in any case, the vast majority of our network is in a healthy position and in a profitable situation. The actual number of stores, if you just run the numbers and look at them, that, let us say, as of today, are loss-making, is a very small percentage. But of course, as part of our careful assessment of the healthiness of the network, we take into account the current and expected evolution of it, to take the best decisions going forward. Secondly, we have opened also a lot of stores in the last three years, covering many white spots. So we also have to accept some time to allow these stores to get to run rate sales level, so that they become not dilutive, but accretive into the profitability percentage of the channel. But, of course, I acknowledge that when you look at the consolidated numbers, these are basically hitting on the bottom line profitability percentage. But it has always been our expectation to, in any case now, slow down this expansion path, and coupled with the review of the stores, let us say we will come back with better guidance on the future evolution of the store network. But let us say right now, in the last quarter, we have a stable network or a slight reduction of the store network, minus 3%, when we look at the March versus June network size. Also since September, the network just grew barely. Of course, in the future, we would not expect a net growth in a way. So, for being more precise, and also we want to be cautious into saying exact numbers of how many are positive or negative. Again, I can hint that the actual negative is a small fraction in the total, but the assessment will be complete and broad to also go towards the customer movement. On your last question on the profitability of the selective exclusive and corporate brands. We run those businesses, let's call it businesses, but those segments not only for the customer loyalty, for sure, they are also accretive on a percentage basis in terms of the margin. As you would expect, the own brands deliver a significantly higher gross margin compared to the third-party brands, without being very precise, but let's say, well into a double-digit number higher profitability percentage compared to the blended average of our 43% to 44%, let's say. When we look at the exclusive brands, these are also oftentimes accretive in terms of margin. Why do I say often? Because in this situation, it depends on the type of brand, or on its distribution globally in the continent, et cetera. And normally we benefit from the fact that they are less discounted anyway, because we only sell them. Both the exclusive and the corporate brands tend to be accretive. O f course, own brands and corporate brands tend to be significantly accretive. Therefore our focus on growing their share will be a margin protection, because we have to acknowledge that on the third-party brands, competition is there to stay, and therefore we need to, in a way, fight against the dynamic. I hope we are addressing your question, Jürgen. Excellent. Thank you very much indeed. That was very helpful. Very good. Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Sander van der Laan, CEO, for any closing remarks. Yes, ope rator. Thank you very much. I want to thank everybody for your attention. It has not been an easy quarter in a challenging marketing environment. We continue to work on this, not only as the management, but also with all our people in the stores, online and offline. We look forward to come back to you in the course of the calendar quarter four, and I wish you a great day, and hopefully see or talk to you soon again. Bye-bye. Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines.