On 27th August BoConcept have their AGM and Q1 report. I don't think they will move guidance but we may see signs of strong organic sales growth (new collection, new ads) and - more importantly - good margin progression. They target a 5-7% ebit margin by 4/17 (1.5% to 4/15) and their new "light" business model could achieve a DD margin in my opinion. Yet the only analyst thinks they will only achieve 5.7% by 4/17. I smell upgrades if management stay on track.
This is an early stage restructuring story. But if management are to be believed they will make c77m ebit on a 400m mkt cap, debt free. That's 5x ev/ebit by 4/17 vs Danish sector average of 11.4x.
So? Global brand, new strategy, bargain price!
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