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UPDATE 1-Metro Media-Saturn hurt by sales dip at online site Redcoon
October 19, 2016 / 6:30 AM / in a year

UPDATE 1-Metro Media-Saturn hurt by sales dip at online site Redcoon

* Q4 sales 14.2 bln euros vs analyst consensus for 14.29 bln

* Like-for-like sales up 0.1 pct, down 2.0 pct at Media-Saturn

* FY guidance confirmed for slight rise in EBIT

* Metro expects “favourable environment” for Christmas trade (Adds details, background)

BERLIN, Oct 19 (Reuters) - German retailer Metro saw a fall in fiscal fourth-quarter sales at its Media-Saturn consumer electronics unit due to a decline at online site Redcoon and a reversal after the European soccer championship had boosted sales of televisions.

Group sales dipped 0.5 percent to 14.2 billion euros ($15.59 billion), at the low end of analyst forecasts which averaged 14.29 billion.

It said like-for-like sales rose 0.1 percent, supported by increases at its cash and carry and Real hypermarkets businesses, which it plans to separate from its consumer electronics chain and list next year.

The cash and carry business, which serves independent traders, hotels and restaurants, saw like-for-like sales rise 1.4 percent, with its Russia unit, which had suffered from the downturn there, reporting slight growth.

However, like-for-like sales fell 2 percent at Media-Saturn, as turnover sagged after the European soccer championship and due to a decision to end the unprofitable wholesale business of its online site Redcoon.

Metro reiterated its forecast for a slight rise in earnings before interest and taxation in fiscal 2015/16, excluding special items. It will report full results on Dec. 14.

Metro said it is well prepared for the upcoming Christmas season, when it makes the bulk of its profits, saying it expects “a favourable market environment”. (Reporting by Emma Thomasson; editing by Tina Bellon and Jason Neely)

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