Ceconomy reported weak Q1 FY17/18 results (c.15% slump in profitability). We believe the shift in consumer demand (from a profitable Christmas season to an immensely competitive Black-Friday, particularly in Germany) is structural in nature. Although management expects to cover-up most of the Q1 miss (and partially compensate for the shortfall in profitability and net working capital) over the coming quarters and has kept the annual guidance unchanged, we are sceptical in the short term. We h
19 Feb 2018
Weak Q1 performance
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Weak Q1 performance
Ceconomy reported weak Q1 FY17/18 results (c.15% slump in profitability). We believe the shift in consumer demand (from a profitable Christmas season to an immensely competitive Black-Friday, particularly in Germany) is structural in nature. Although management expects to cover-up most of the Q1 miss (and partially compensate for the shortfall in profitability and net working capital) over the coming quarters and has kept the annual guidance unchanged, we are sceptical in the short term. We h