Boozt cuts outlook as consumer spending returns to normal, shares slump
09/06/2022 12:34
(Adds analyst comment)
** Shares in Boozt BOOZT.ST slump more than 17% after the
Swedish online retailer cuts guidance due to weakening consumer
sentiment, continued supply chain disruptions and rising
inflation urn:newsml:reuters.com:*:nFWN2XV0QW
** The group now expects 2022 adjusted EBIT between SEK
235-285 million ($23.92 million-$29.01 million) compared with
previous forecast of SEK 365-420 million
** Nordnet analyst Per Hansen says the main reason for the
downgrade is consumer spending returning to normal after the
COVID-19 lockdowns and recent rebound
** "Some of the online sales that were artificially high in
2020/2021 are returning to longer term levels," he says
** He adds the stock market is preparing for the economic
effect, which will come in six months, as a result of pressure
on private consumption, erosion of disposable income and rising
interest rates
** "First half of 2022 is coming to an end and has proven to
be more challenging than what we believed when we set our
targets for the year," CEO Hermann Haraldsson said in a
statement
** The stock is on track for its worst day ever, dropping
more than 50% year-to-date
($1 = 9.8256 Swedish crowns)
(Reporting by Jagoda Darlak and Louise Rasmussen in Gdansk)
((jagoda.darlak@tr.com))