Footway: Now, it’s all about cash flow – SEB

Following a marked decline in consumer sentiment and retail sales over the past year, Footway ended Q4 reporting a 26% y/y sales decline. Integration of its two DCs has commenced (costs will be taken throughout 2023) and is expected to generate savings totalling at least SEK 40m as of Q1 next year. Adjusting for a SEK 186m inventory write-down, Q4 EBITA surprised and OCF too was well ahead of our estimates. We reiterate our mid-point of SEK 6.50.

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