Bearish: Analysts Just Cut Their Global Fashion Group S.A. (ETR:GFG) Revenue and EPS estimates

Market forces rained on the parade of Global Fashion Group S.A. (ETR:GFG) shareholders today, when the analysts downgraded their forecasts for next year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the most recent consensus for Global Fashion Group from its seven analysts is for revenues of €1.8b in 2023 which, if met, would be a modest 4.9% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €2.0b in 2023. It looks like forecasts have become a fair bit less optimistic on Global Fashion Group, given the substantial drop in revenue estimates.

Check out our latest analysis for Global Fashion Group

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It’s pretty clear that there is an expectation that Global Fashion Group’s revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 9.4% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 15% annually. Factoring in the forecast slowdown in growth, it seems obvious that Global Fashion Group is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. They’re also anticipating slower revenue growth than the wider market. Given the serious cut to next year’s outlook, it’s clear that analysts have turned more bearish on Global Fashion Group, and we wouldn’t blame shareholders for feeling a little more cautious themselves.

Unanswered questions? At least one of Global Fashion Group’s seven analysts has provided estimates out to 2024, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.