Global Blue Group Holding Stock Drops Despite Solid Q2 Earnings Report: Retail’s Exuberant

Revenue increased 17% year-over-year (YoY) to €132 million (~$137 million) during the quarter driven by a solid performance in both Tax Free Shopping Solutions and Payments

Stocktwits Inc

First Published Nov 22, 2024, 10:39 PM IST | Last Updated Nov 22, 2024, 10:39 PM IST

Shares of technology and payments firm Global Blue Group Holding ($GB) fell 4% on Friday after the company announced its second-quarter earnings report.

Revenue increased 17% year-over-year (YoY) to €132 million (~$137 million) during the quarter driven by a solid performance in both Tax Free Shopping Solutions and Payments.

Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) jumped 25% YoY to €59 million (~$61 million).

Adjusted net income group share rose to €20.7 million compared to €14 million in the same quarter a year ago.

Segment-wise, Tax Free Shopping Solutions revenue rose 18% YoY to €101.9 million while Payments revenue increased 16% YoY to €23.4 million, driven predominantly by increased margins on treasury gains.

Meanwhile, Post-Purchase Solutions’ revenue dipped 1% YoY to €6.7 million led by “management’s focus on contribution margin.”

Notably, the firm raised its repurchase program to $15 million and extended it for an additional nine months to Nov. 30, 2025.

The company said that taking into account the recent luxury market slowdown and the group’s decision to accelerate €5 million of investments (fixed costs) in future growth initiatives, it has adapted the FY24/25 adjusted EBITDA guidance to €185 million - $205 million.

At the same time, long-term targets include 8-12% revenue growth and a net leverage ratio of lower than 2.5x.

CEO Jacques Stern said that the macro and microeconomic environment in which Global Blue operates remains highly favorable and that the travel industry is experiencing positive trends.

Following the earnings announcement, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (96/100), accompanied by ‘extremely high’ retail chatter (95/100) that hit a one-year high.