Solid report; G5 Store gaining significant traction
G5 delivered a solid Q4 report, with sales +0% and EBIT +2% vs. our estimates. As we expected, organic growth improved from -10% in Q3 to -7% in Q4, driven by new highs for Sherlock and a stabilisation of Hidden City. This is better than the underlying market growth of -10% in Q4. Encouragingly, management gave a good impression at the conference call, also saying the positive trend continued in January. It also said Q4'22 should be a good proxy for 2023. Also, on the positive side, G5 Store gained significant traction, growing 30% q-o-q in Q4, now comprising ~3-4% of sales, quickly approaching critical mass. We think the gross margin on G5 Store is >95%.
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