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Footway: Focus on growth and capital management - SEB

Footway Group – the online footwear and sports retailer – reported Q2 sales and earnings below our expectations (no consensus available). We lower our sales and EBITA estimates over our 2021-23 forecast period, while improving our working capital release assumptions reflecting new inventory guidance. Trading at 0.8x 2022E EV/Sales, the equity is now at a near 60% discount to its peer group: we reiterate our SEK 39 midpoint equity value.

Footway Group – the online footwear and sports retailer – reported Q2 sales and earnings below our expectations (no consensus available). We lower our sales and EBITA estimates over our 2021-23 forecast period, while improving our working capital release assumptions reflecting new inventory guidance. Trading at 0.8x 2022E EV/Sales, the equity is now at a near 60% discount to its peer group: we reiterate our SEK 39 midpoint equity value.
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