Footway's Q1 sales and LBITA are significantly below our forecasts and company guidance ahead of Q1 (for "LBITA to decrease by SEK 25m y/y"; i.e. to LBITA of SEK 38m). Organisational restructuring add a total of SEK 5m in NRIs. While we view inventory write-downs as operational costs in any retailer, the gross margin is negatively impacted by SEK 7m of provisions. We will lower our financial forecasts to reflect Q1 deviations and our mid-point value of SEK 20 is under review.
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