Pierce Group Q2 revenue up 3%; expects warehouse costs to normalize by Q3
Pierce Group Q2 revenue up 3%; expects warehouse costs to normalize by Q3
Overview
Sweden motorcycle gear e-commerce firm's Q2 net revenue rose 3% yr/yr to all-time high
Adjusted EBIT for Q2 edged higher, impacted by warehouse system transition
Company completed Series C share issue and share transfers under incentive program
Outlook
Company expects warehouse productivity and costs to normalize by end of third qtr
Pierce expects sales in Belgium and Spain to recover and stabilize over coming months
Company expects transformation costs to decrease gradually in coming quarters
Result Drivers
WAREHOUSE SYSTEM TRANSITION - Co said implementation of new warehouse management system created temporary operational challenges, including paused fulfilment and lower productivity, impacting both revenue and costs
NEW MARKET ROLLOUT - Co completed rollout of 13 new localized markets with local-language websites and delivery options, reporting promising initial performance
ECOMMERCE PLATFORM MIGRATION - Migration of established markets to new e-commerce platform led to significant temporary sales decline, with recovery expected as search engines re-index new site structures
Company press release: ID:nMFN5bJCYF
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| SEK 537 mln |
|
Q2 Adjusted EPS |
| SEK 0.44 |
|
Q2 Adjusted EBITDA |
| SEK 43 mln |
|
Q2 Gross Margin |
| 43.10% |
|
Q2 Adjusted EBIT |
| SEK 34 mln |
|
Q2 Adjusted EBIT Margin |
| 6.40% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the department stores peer group is "buy"
Wall Street's median 12-month price target for Pierce Group AB (publ) is SEK16.00, about 55.9% above its August 20 closing price of SEK10.26
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
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(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.)