Ceconomy Shares Dropped After 3Q Results
By Olivia Bugault
Ceconomy AG (CEC.XE) shares sharply dropped after the German
retailer of electrical goods reported its third-quarter
Net loss from continuing operations in its fiscal third quarter
narrowed to 48 million euros ($53.8 million) from EUR104 million,
while sales for the quarter edged down to EUR4.57 billion from
At 0834 GMT, Ceconomy shares were down 9.3% lower at
Ceconomy's third-quarter sales came in line with consensus, but
its adjusted loss before interest and taxes of EUR45
million--excluding Fnac Darty--was a miss, Bryan Garnier said. "The
profitability pressure continues to lie on the declining gross
margin, which eroded much faster than anticipated this quarter at
18.7%," the brokerage said. Competitive pressure and numerous
promotional campaigns were two of the factors that weighed on
Ceconomy's gross margin, it said.
Ceconomy confirmed its targets for the full fiscal year, which
include slight growth in sales compared with the previous period
and for net capital to decline moderately.
Write to Olivia Bugault at firstname.lastname@example.org
(END) Dow Jones Newswires
August 13, 2019 05:05 ET (09:05 GMT)
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