ABY -19.21%: The online beauty retailer was hit hard today following a 3Q21 trading update and issuance of FY revenue guidance which was around ~8% below our / the markets expectations. Staying with the positive for a moment, quarterly revenue was up +47% to $39.4m, which was a good result in a seasonally weaker quarter for retail post 2Q21, however they said revenue growth for the full year would be within the range of 43% to 47% which implies $173-$178m versus current consensus of ~$188m. they also talked to higher expenses incurred for growth, investment in marketing, advertising, in addition to staffing costs and the like. A similar sort of rhetoric that we heard from some of the other online retailers in recent times. Not a good update and not a good day for ABY which resides in our Emerging companies Portfolio. We’ll cover in more detail in coming notes.
MM is holding ABY despite today’s downgrade
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