Norway's Europris Q3 sales miss estimates as lower footfall and weak campaigns weigh

Overview

• Norway variety retailer's Q3 sales fell 1.6% yr/yr, missing analyst expectations

• Gross margin rose to 42% from 40.7% despite lower footfall

• Lower Q3 sales driven by early summer and weaker campaign performance

Outlook

• Europris expects consumers to remain price-conscious, focusing on value and promotions

• Group reiterates ambition to grow ÖoB sales to SEK 5 bln and achieve 5% EBIT margin by end-2028

• Visibility remains limited for certain costs, with further volatility in energy, freight and inputs possible

Result Drivers

• EARLY SUMMER - Co said lower footfall in Q3 reflected an earlier onset of summer in the Nordics compared with last year

• CAMPAIGN WEAKNESS - Co said campaign programme performed below expectations in Q3 and corrective measures have been initiated

• PRICE-CONSCIOUS CUSTOMERS - Co said customers continued to favour lower-priced items, with sales of campaign and private-label products growing

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the discount stores peer group is "buy."

• Wall Street's median 12-month price target for Europris ASA is NOK90.00, about 5.5% above its October 28 closing price of NOK85.30

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

Reuters Recommended Reads

• Oct 28 - Norwegian Air Q3 operating margin rises to 21.4% on summer travel demand

• Oct 28 - Norway's Borregaard Q3 EBITDA hits record, beats analyst estimates

• Oct 26 - Medifast Q3 revenue falls on fewer active earning coaches

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.)