Based on preliminary figures for the 1st quarter of financial year 2017/18, we expect CECONOMY Group to achieve an EBIT of around 260 million Euro compared to an EBIT before special items of 308 million Euro in the respective prior-year period. On the basis of current information, this decline is primarily attributable to the following reasons:
- Price reductions around Black Friday, in particular in Germany, to support the leading market position. This resulted in a shift of December sales into the more competitive November.
- Negative technical effects due to last year's planning-related higher accruals in Italy. These will be compensated over the course of the current year.
- Costs for the build-up of the CECONOMY AG Holding.
On the Group level, the change in net working capital is likely to be around 380 million Euro lower compared to the respective prior-year period. This development was mainly caused by lower payables due to increased direct sourcing from suppliers. Moreover, higher levels of new stock, in particular in Germany, resulting from weakerthan- anticipated December sales as well as an increase in receivables impacted net working capital.
For further information, please see the press release.