EUR 100.00 For Business Accounts Only

DIA: 2Q’20 TRADING UPDATE (ANÁLISIS BANCO SABADELL)

2Q'20 vs 2Q'19 Results
Sales: € 1.81 Bn (+6.3%)

The company has released its trading update for 2Q’20, showing LfL growth of +15% (vs. +3% in 1Q’20 and +13% BS(e)), with all regions registering positive figures, especially Spain (~66% of sales; +20% LfL vs. +8% in 1Q’20). In any case, this growth is reduced to +6.3% due to the closure of stores and the FX effect.
Despite this positive performance, these results are totally in line with the gradual improvement expected, especially in the 1H’20, thanks to both a favourable comparable basis and the effect from Covid-19. In any case, the key will lie in operating performance, which we will not know until the full results are released on 6 August, and where we should continue to see gradual improvement in margins, yet to a lesser extent. Bearing this in mind, we do not expect a relevant market impact today, especially considering the stock’s positive performance since February’s pre-Covid-19 highs (+28% in absolute terms.). SELL. Target Price: € 0.10/sh. (upside -19.60%).