Ceconomy reported weak sales growth in Q2 primarily due to the discontinuation of the VAT campaign in Germany. However, the group’s profitability improved thanks to cost savings associated with the campaign, a higher contribution from Fnac Darty and the absence of insolvency losses in the Netherlands. We have trimmed the target price to incorporate the negative investor sentiment on the stock – the company’s inability to grow inorganically, no decision on ailing Russian and
01 Jun 2018
Despite a good Q2, tangible actions required to restore investors' confidence
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Despite a good Q2, tangible actions required to restore investors' confidence
Ceconomy reported weak sales growth in Q2 primarily due to the discontinuation of the VAT campaign in Germany. However, the group’s profitability improved thanks to cost savings associated with the campaign, a higher contribution from Fnac Darty and the absence of insolvency losses in the Netherlands. We have trimmed the target price to incorporate the negative investor sentiment on the stock – the company’s inability to grow inorganically, no decision on ailing Russian and