P3, 4 months ending 31st December 2022 P3 Group revenue was -13% YoY (cc) (H1: -9% YoY(cc)), below consensus expectations at -10% YoY. Across geographies, P3 constant currency sales growth was: UK at -11% YoY (P2: -8% YoY); USA at -17% YoY (P2: -29% YoY); Europe at -11% YoY (P2:+5% YoY); ROW at -15% YoY (P2: +15% YoY). Group gross margins were 49.7% versus expectations of 51.2%, but are expected to improve in P4 with improved markdown activity – inventory levels have been reduced by 27% YoY. The Group had £300 million of gross cash at the end of December, meaning net debt is expected to be less than 1x adj. EBITDA at the end of the financial year. Outlook adj. EBITDA is expected to be in line with market expectations (FY23E consensus: £62m), with management expecting revenue to fall 12% for the year, with EBITDA margins of 3.5%. This implies H2 sales decline by 14% YoY – thus little improvement in P4 - and that EBITDA margins are below 3.5% in H2, having been 4% in H1. View Our forecasts assume a subdued recovery in sales growth going forward - with broadly flat YoY growth in FY24E and +3% YoY in FY25E, with EBITDA margins reaching just 5% by FY25E, versus historically being as high as 10%. Going forward, comparatives start to ease and £60m of elevated freight costs in FY22 should also start to unwind. However, the deterioration in the core UK business and across all markets is concerning and raises questions as to whether recovery is even on the table at this juncture, as well as prompting questions about the structural health of the business