Finland's Verkkokauppa Q3 revenue misses estimates on weak demand

By Reuters News


Overview

  • Finland online electronics retailer's Q3 revenue grew 2.1% but missed analyst expectations

  • Comparable EBIT improved year-on-year, while gross margin rose slightly to 16.7%

  • Growth driven by international and B2B sales; consumer sales declined amid cautious demand


Outlook

  • Verkkokauppa.com maintains 2026 guidance for revenue and comparable operating result to increase

  • Company says guidance includes uncertainties related to consumer purchasing power and behavior

  • Verkkokauppa.com notes business is seasonal, with Q4 sales and result being significant


Result Drivers

  • INTERNATIONAL AND B2B SALES - Co said Q3 revenue growth was driven by strong international sales, especially in Sweden, and double-digit growth in B2B sales

  • CONSUMER DEMAND WEAKNESS - Co said consumer sales declined due to a strong comparison period, intense competition and continued caution among households

  • GROSS MARGIN IMPROVEMENT - Co attributed higher gross margin to dynamic pricing, better supplier terms, well-timed purchasing, focused category management, and improved own brand profitability


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

EUR 133.90 mln

EUR 137.05 mln (4 Analysts)

Q3 Gross Margin

16.70%

Q3 Comparable EBIT

EUR 4.70 mln

Q3 Comparable EBIT Margin

3.50%

Q3 EBITDA

EUR 6.40 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 Verkkokauppa.com Oyj is €4.00, about 5.3% above its October 21 closing price of €3.80

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Oct 21 - Husqvarna looks east as Chinese rivals chip away at robot lawnmower lead

  • Oct 21 - Sweden's Husqvarna slightly misses Q3 sales estimates amid weak demand

  • Oct 21 - France's Fnac Darty Q3 revenue rises on strong European growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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