France's Spartoo H1 adjusted revenue falls on weak consumer demand
France's Spartoo H1 adjusted revenue falls on weak consumer demand
Overview
France online fashion retailer's H1 adjusted revenue fell 4.6% yr/yr to €56.8 mln
Adjusted EBITDA turned negative at -€0.6 mln, down from €1.3 mln a year earlier
Company generated €2.3 mln positive free cash flow and cut net debt by 37% over 12 months
Outlook
Company says economic environment remains unfavorable to consumer spending
Spartoo says generating free cash flow is a priority in current market conditions
Company to maintain rigorous control over inventory and investments
Result Drivers
WEAK CONSUMER DEMAND - Co said rising oil prices and inflation pressured consumer purchasing power, leading to lower activity and gross margin
INVENTORY AND INVESTMENT DISCIPLINE - Co said rigorous control over inventory and investments helped generate positive free cash flow and reduce net debt
THIRD-PARTY SERVICES GROWTH - Co said Third-Party Services GMV rose 7.4% yr/yr, offsetting some weakness in core business
Company press release: ID:nBw2KJkPGa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Adjusted Revenue Before Tax |
| EUR 56.8 mln |
|
H1 Net Loss |
| EUR 1.6 mln |
|
H1 Adjusted EBITDA |
| -EUR 600,000 |
|
H1 EBIT |
| -EUR 1.4 mln |
|
H1 GMV |
| EUR 77 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the department stores peer group is "buy"
Wall Street's median 12-month price target for Spartoo SA is €1.00, about 284.6% above its September 25 closing price of €0.26
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 106 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.)