DGAP-News: home24 SE / Key word(s): Change in Forecast
home24 SE adjusts sales estimate for the second quarter of 2018 and confirms guidance
- Exceptionally warm weather in the second quarter of 2018 caused demand in the market for large furniture to decline significantly
- Estimated sales growth in the second quarter of 2018 now at approx. 6-8 percent compared to the previous year - well above market
- Targeted growth of around 30 percent for full year 2018 still feasible despite the challenges
- Medium-term growth and earnings guidance as communicated in the IPO process confirmed
Berlin, 19 July 2018 - home24 SE ("home24") announced today that the sales estimate for the second quarter 2018 will be adjusted based on information now available and that the company expects a sales increase of approx. 6-8 percent adjusted for foreign currency effects compared to the previous year. The final quarterly financial results will be published on September 12, 2018.
A key reason for the adjustment was the unusually warm weather from April to June 2018, which led to a noticeably lower demand in continental Europe and especially in Germany during this period in the market for large furniture, the core business of home24. The company assumes that this demand will shift seasonally and will therefore be made up over the rest of the year. Among other sources, this is indicated by market data from the summer of 2003, which was also exceptionally warm. The estimated increase in sales of approx. 6-8 percent in the second quarter of 2018 compared to the previous year is still well above the market development.
In addition to the challenges posed by the warm weather, the processing of open orders in the second quarter of 2018 was below the level of the previous year. This was caused by the temporarily necessary parallel operation of two ERP systems - while older orders were still processed in the old system, more recent orders were already being processed via the new system. The transition process is now largely complete, so that the logistics processes can again be handled with the usual high efficiency.
Despite the existing challenges, home24 believes that the growth target of around 30% for the full year 2018 can still be achieved on a currency-adjusted basis. At the same time, the company confirms its medium-term growth and earnings guidance as communicated in the IPO process. The company announced at the time that it would break even on an adjusted EBITDA basis by the end of 2019.
Marc Appelhoff, co-CEO of home24, said: "We were able to significantly increase our sales despite the warm weather and the resulting lower demand. This is clear evidence of the strength and stability of our business model. We are convinced that we can continue to grow in the coming months and quarters and thus achieve the targets we have set ourselves."
home24 is the leading home & living pure-play e-commerce platform in continental Europe and Brazil. With over 100,000 SKUs sourced from over 500 suppliers, home24 offers its customers a unique selection of large and small furniture items, outdoor furniture, mattresses and lighting products. home24 is headquartered in Berlin and has more than 1,000 employees worldwide. The company is active in seven European markets: Germany, France, Austria, the Netherlands, Switzerland, Belgium and Italy. home24 is also active in Brazil under the trademark "Mobly". In Europe, the company delivers its products - regardless of size and weight - free of charge to its customers' homes and also offers free returns. The product offering of home24 comprises numerous brands, including a large number of private labels. home24 is listed on the Frankfurt Stock Exchange (ISIN DE000A14KEB5). Further information can be found on the company's website: www.home24.com.
This release contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management of the Company. Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this release or the underlying assumptions. The Company does not assume any obligations to update any forward-looking statements.
|Greifswalder Straße 212-213|
|Phone:||+49 30 - 609880019|
|Fax:||+49 30 - 2016329499|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|