Johannesburg - Steinhoff International Holdings shares fell the most in two months after the acquisitive South African clothing and furniture retailer reported full-year profit below analysts’ estimates.
The stock declined 4.7 percent as of 1:24 p.m. in Frankfurt, after sliding as much as 5.8 percent, the most since June 27. More than 2 million shares changed hands, almost equalling the three-month daily average. Steinhoff moved its primary listing to Germany from Johannesburg in December, retaining a secondary listing in the South African city.
Operating profit rose 32 percent to 1.47 billion euros ($1.64 billion) in the 12 months through June, compared with an average estimate of 1.49 billion euros, according to a Bloomberg poll of seven analysts. Fourth-quarter earnings before interest and taxes of 383 million euros were about 15 percent below the consensus, Exane analysts said in a note.
Steinhoff CEO Markus Jooste is seeking to create a global retail group that’s focused on the “value” end of the market, chairman Christo Wiese said in an interview earlier this month.
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The company has had offers accepted for two targets this year, Mattress Holding in the US and UK discounter Poundland Group, and has failed in bids for Britain’s Home Retail Group and French electronics retailer Darty.
Steinhoff will release its full earnings on September 7. That report will be “more relevant and will give an outlook, more colour on the complete results where things like the tax rate are quite significant,” said Mark Hodgson, an analyst at Avior Capital Markets.
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