Norway's Europris Q2 sales miss estimates, hurt by Easter timing
Norway's Europris Q2 sales miss estimates, hurt by Easter timing
Overview
Norway discount retailer's Q2 sales declined 2.8% yr/yr, missing analyst expectations
Gross margin for Q2 rose to 42.4% from 40.6%
Company says Q2 sales impacted by Easter timing and temporary store closures in Sweden
Outlook
Europris expects consumer price-consciousness to persist amid mixed macroeconomic conditions in Norway and Sweden
Company maintains ambition to grow ÖoB sales to SEK 5 bln with 5% EBIT margin by end-2028
Store remodelling in Sweden expected to weigh on profitability near term, support earnings longer term
Result Drivers
EASTER TIMING - Co said Q2 sales were negatively impacted by timing of Easter, estimated at around 4.5 pp for group and 5.5 pp for Norway
STORE REMODELLING - Co said temporary store closures in Sweden due to remodelling weighed on Q2 sales
CAMPAIGN MIX SHIFT - Co said shift in campaign mix to less low-margin consumables and more non-food items and seasonal products weighed on footfall and sales short-term but supported gross margin
Company press release: ID:nWkrqDWfB
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | NOK 3.69 bln | NOK 3.86 bln (5 Analysts) |
Q2 Gross Margin |
| 42.40% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the discount stores peer group is "buy"
Wall Street's median 12-month price target for Europris ASA is NOK98.00, about 13% above its July 8 closing price of NOK86.70
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)