OVS shares rise 1% after H1 profit beat, outlook remains favorable

OVS shares experienced a 1% increase on Thursday following the Italian fashion retailer's announcement of first-half adjusted net profit surpassing market expectations. The company's strong sales growth and improved margins contributed to the earnings, with management anticipating a positive second half. OVS shares climbed to €5.61, a 0.99% rise, outperforming the FTSE MIB, which remained relatively stable.

The adjusted net profit reached €49.1 million, exceeding the Visible Alpha consensus of €43.8 million. Consolidated net sales grew by 10.7% to €877.4 million, and adjusted EBITDA increased by 12.3% to €114.3 million. The company's growth was attributed to higher like-for-like sales across its brands, and the integration of Goldenpoint played a role in revenue, moving it into positive EBITDA territory.

CEO Stefano Beraldo expressed optimism for the second half, highlighting the favorable response to the autumn collections and the potential boost from the euro's appreciation against the dollar. He also mentioned that no significant negative impact from other operating costs was expected. OVS reaffirmed its full-year cash-generation forecast, noting that net financial debt decreased to €240.1 million by the end of July from €293.6 million a year prior.