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Fnac Darty hikes outlook getting boost from market dynamics, online -Breaking

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© Reuters. Pictured at the entry to a Fnac retail chain store in Paris (France), February 23, 2021. REUTERS/Sarah Meyssonnier/Files

(Reuters] Fnac Darty, a French retailer has slightly revised its guidance for full year. The company now expects revenue growth of above 5%.

According to the seller of music, books and other electrical items, it previously forecast growth of about 5%. It stated that 2021 operating income will be at the higher end of its previous guidance, which was between 260m-270m euros (302 million-314 millions).

In-store sales have been booming in the last few months, as customers returned from months of closures due to pandemic-related illnesses. Online sales have continued to rise.

Fnac Darty had a 9.7% increase in total group sales during the last nine months, while online sales contributed 26% to that period’s revenue.

Global retail markets are facing disruptions in supply chains ahead of peak season. Fnac Darty’s Chief Financial Officer Jean-Brieuc Le Tinier stated on a conference call that there were no problems right now.

According to him, despite some pressures on IT products and telephony, the company is less affected by its market share in high-end products. These products offer greater margins and are more resistant to inflation and raw material price increases.

Fnac Darty’s third quarter sales were 1.85 billion euros down 0.5% from the previous year.

($1 = 0.8591 euros)

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