• Demand remains strong despite continued D2C sales issues
• Synergy effects after the acquisition of Giant Loop starting to form
• We maintain our valuation interval of SEK 73.00 – 92.00 per share

USWE reported sales as expected, but lower profitability than our esti-mate for Q2 of fiscal year 2022/2023. Cautious distributors continue to have a big impact on bottom line. The company has during the quarter, applied the precautionary principle, and made reservations for deliver-ies where payments and collection of goods has been delayed. We forecast a somewhat lower sales for the coming quarters, however, our long-term case remains intact. We maintain our fair value estimate of SEK 73.00 – 92.00 per share.

The full report is available here.