(RTTNews) - Shares of Ceconomy AG (MTAGF.PK, MTTRY.PK) were gaining around 8 percent in German trading after the consumer electronics retailer Thursday reported that its third-quarter preliminary results were above expectations with the gradual business recovery after Covid-19 restrictions. The company also upgraded its fiscal 2020 outlook.
For the quarter, the company now expects adjusted Group EBIT to be same as last year, while the company previously expected a decline in adjusted Group EBIT. In the prior year, adjusted Group EBIT was a loss of 43 million euros.
Earnings were positively impacted in particular by savings from the COVID-19 cost measures as well as the sales growth in May and June.
Further, CECONOMY now expects sales adjusted for currency effects and portfolio changes to decline by about 8.4 percent in the third quarter.
The loss of stationary sales in April was partially offset by the strong growth of the online business. In April, sales declined, adjusted for currency effects and portfolio changes, around 43 percent.
With the gradual reopening of stores in all countries except Turkey in May, CECONOMY again returned to positive growth in sales of around 3 percent, and the growth in June was around 12 percent.
Looking ahead, for full year 2020, CECONOMY now expects only a slight decline of total sales adjusted for currency effects compared to the previous year. In addition, CECONOMY expects an EBIT between 165 million euros and 185 million euros, not taking into account the earnings effects from companies accounted for using the equity method.
The company previously expected a decline in total sales, and significant decline in EBIT.
In Germany, Ceconomy shares were trading at 3.53 euros, up 8.35 percent.
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