SRP cuts margin forecast on marketing investments, storage costs

July 25 (Reuters) – French online retailer SRP Group nudged down its annual margin forecast on Tuesday after reporting a steep drop in first-half core earnings.

Earnings before interest, tax, depreciation and amortisation fell 30.8 percent to 10.9 million euros ($12.7 million) for the first six months of the year.

SRP forecast an annual core operating margin (EBITDA) in the 5.5-6.0 percent range, down from the over 6.0 percent it had stated previously, as it sees higher marketing investments and storage costs in the second half of the year.

The operator of webshops such as maintained its 2017 revenue targets, however, and also left 2020 guidance unchanged. ($1 = 0.8581 euros) (Reporting by Camille Raynaud; Editing by Adrian Croft)

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