Findel (LON:FDL) reports that its first 20 weeks, trading is in line with expectations in both businesses: Express Gifts and Findel Education. The pre-Christmas retail season and the new school year will respectively be the test for both divisions, but initial indications look strong. We retain our forecast 22% FY18 EPS growth and our 324p valuation with increased confidence.
Express Gifts well positioned for the retail peak season
Encouragingly, in the 20 weeks to 18 August, Express saw customer and revenue growth above 10%, which is our FY18 revenue growth forecast. This provides a good starting point to the peak trading season, indicating that steps to promote the value offer are resonating with price-conscious customers. The digital transformation continues, a positive signal given that online sales grew from 56% to 63% of revenue in FY17 (see our July note), that management sees the figure “inevitably” approaching 100%, and has made that central to strategy.
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