Equity research Zinzino: Making a late summer splash

Preliminary sales for August (released 4 September) blew past our expectations with an increase of 39 per cent versus our forecast of 14 per cent. Zinzino grew in all regions except the Nordics, and sales in the core Central Europe region increased by a whopping 36 per cent. Also, the strong momentum in South & Western Europe accelerated further, likely underpinned by the Xelliss acquisition.

While it is precarious to draw conclusions from a single month, the August report indicates markedly better Q3 sales than we anticipated in our latest update, with growth, once again, possibly in the twenty handles. From a seasonal perspective, September is typically a strong month and will significantly impact the outcome.

We will review our assumptions after the full Q3 sales figures, likely increasing our sales estimates by a couple of percentage points and adjusting the valuation accordingly.

Read our latest research update here.

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