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EUR 200.00
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The company will release its 1Q’20 results on Wednesday, 10 June, before the opening bell. We expect very poor results, unsurprisingly, as stores in most of the countries in which the company operates were closed for part of the period We forecast a -39% decline in sales ( a -38% drop in LfL sales), € -249 M of EBIT and € -243 M of Net Profit. Attention will also be paid to how the following quarter has started. It is difficult to estimate but we believe that the first 6 weeks of Q2 (all of May and the first days of June) could show a comparable drop in sales of c. -50%. The share price has slid by -20% since February’s highs (+7% vs. Ibex, +5% vs. peers) and has soared by +28% from lows (+6% vs. Ibex, -6% sector). We believe it lacks sufficient upside at current levels.
INDITEX: 1Q'20 RESULTS PREVIEW: COVID-19 AFFECTS THE P&L STATEMENT (ANÃLISIS BANCO SABADELL)
1Q’20 Results Preview: Covid-19 affects the P&L statement. SELL.The company will release its 1Q’20 results on Wednesday, 10 June, before the opening bell. We expect very poor results, unsurprisingly, as stores in most of the countries in which the company operates were closed for part of the period We forecast a -39% decline in sales ( a -38% drop in LfL sales), € -249 M of EBIT and € -243 M of Net Profit. Attention will also be paid to how the following quarter has started. It is difficult to estimate but we believe that the first 6 weeks of Q2 (all of May and the first days of June) could show a comparable drop in sales of c. -50%. The share price has slid by -20% since February’s highs (+7% vs. Ibex, +5% vs. peers) and has soared by +28% from lows (+6% vs. Ibex, -6% sector). We believe it lacks sufficient upside at current levels.
Underlying
Inditex (ITX SM)
Provider
Sabadell
Ignacio Romero
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