France's Fnac Darty Q3 revenue rises on strong European growth

Overview

• France electronics retailer's Q3 revenue rose 1.8% LFL yr/yr

• Gross margin rate rose 40 bps, helped by services and product mix

• European Commission cleared EP Group takeover bid, offer closes November 9

Outlook

• Fnac Darty confirms expectation of higher 2026 operating margin rate and free cash flow

• Company maintains 2030 strategic objectives under Beyond everyday plan

• Fnac Darty targets at least EUR 20 mln in synergies by end-2026

Result Drivers

• SERVICES AND PRODUCT MIX - Co said gross margin rate rose due to increased contribution from services and favorable product mix

• ONLINE AND OMNICHANNEL SALES - Co said growth in online and Click & Collect sales helped drive overall revenue

• DOMESTIC APPLIANCES - Co said revenue growth was supported by strong sales of small and large domestic appliances

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the computer & electronics retailers peer group is "buy."

• Wall Street's median 12-month price target for Fnac Darty SA is €35.50, about 1.9% above its October 20 closing price of €34.85

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

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(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.)