Sweden's Rugvista Q3 net revenue rises on high order volume

Overview

• Sweden e-commerce carpet retailer's Q3 net revenue rose 16.8% yr/yr

• Gross margin and operating profit improved, supporting higher profitability

• Growth driven by more orders and higher average order value

Outlook

• Company did not provide specific financial guidance or outlook for the current or future periods in its press release

• Company says macro outlook has improved but notes uneven recovery and ongoing geopolitical risks

• Rugvista sees geographic diversity and flexible investments as strengths amid market uncertainty

Result Drivers

• ORDER VOLUME AND VALUE - Co said revenue growth was driven by a higher number of orders and increased average order value

• ASSORTMENT AND PRICING - Co attributed higher average order value to assortment mix, pricing, and customer-related changes

• SUPPLY CHAIN EFFICIENCY - Co said improved gross margin was due to supply chain efficiency and cost control

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong 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 Rugvista Group AB (publ) is SEK91.00, about 28.3% above its November 3 closing price of SEK70.90

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

Reuters Recommended Reads

• Nov 3 - Online fashion retailer Boozt Q3 revenue rises on wider assortment

• Nov 3 - Zalando Q3 revenue slightly beats estimates on B2B expansion

• Nov 3 - Revolve Q3 sales beat consensus on order 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.)