Bike24 Slashes Earnings Guidance Amidst Challenging Market: Wiggle Woes Expose Industry Overselling

# Bike24 earnings guidance cut, Wiggle problems confirm tougher market environment and industry overselling.

One of the EC's largest platforms in Q2 lowered full-year guidance on revenue (-10 to -5% y/y vs. 0 to 10% y/y previously) and EBITDA profitability (-1 to 1% vs. 0 to 3.5% previously).

The behaviour of the share price, however, indicates that the sales decline may be deeper and the company more overvalued and it is not ruled out that it will require a recapitalisation.

Adding to the difficult market environment for companies in the sector are the problems of other platforms, including UK-based Wiggle, which may declare bankruptcy 

 

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