This article first appeared on GuruFocus .
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Revenue Growth:Increased by 0.6% on a like-for-like basis, driven by international operations (+2.7%), while France declined by 0.7%.
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Gross Margin:Expanded by 40 basis points to reach 29%.
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Online Sales:Grew by 4%, representing 21% of total group sales.
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Click and Collect Sales:Account for nearly 50% of total group online sales.
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Marketplace GMV:Increased by 15% in H1 2026.
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Recurring EBITDA:Reached EUR 197 million, an increase of EUR 4 million year-on-year.
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Recurring Operating Income (OROI):Loss of EUR 34 million, improved from a loss of EUR 38 million in H1 2025.
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Net Income:Loss of EUR 82 million from continuing operations.
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Operating Free Cash Flow:Negative EUR 793 million, improved from negative EUR 845 million in H1 2025.
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Net Financial Debt:EUR 737 million, excluding IFRS 16.
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Net Cash Position:EUR 516 million.
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Release Date: July 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Fnac Darty SA ( STU:1FN ) reported a revenue growth of 0.6% on a like-for-like basis, driven by a 2.7% increase in international operations.
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The company's gross margin rate expanded by 40 basis points to reach 29%, supported by growth in the service business.
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Online sales grew by 4% in the first half of the year, now representing 21% of total group sales.
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The integration of UniEuro is progressing successfully, with a target of delivering EUR20 million in synergies by the end of the year.
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Fnac Darty SA ( STU:1FN ) maintains a strong long-term liquidity profile, with a net cash position of EUR516 million and EUR600 million of undrawn committed credit facilities.
Negative Points
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Revenue in France declined by 0.7% due to a sluggish market and high comparison baseline.
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The company reported a net income loss of EUR82 million from continuing operations attributable to the group.
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Operating free cash flow, excluding IFRS 16, amounted to negative EUR793 million, although this was an improvement from the previous year.
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The consumer environment in France remains challenging, impacting overall market trends.
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Inflationary pressures in micro IT and potential price increases in memory chips could impact inventory planning and sales volumes.
Q & A Highlights
Q: Have you noticed the increasing prices of memory chips, and how does this affect your inventory planning? Also, with the acquisition by the Krasinski Group, are you planning to delist following the acquisition? A: We are aware of potential price increases in memory chips, but it hasn't significantly impacted our inventory yet. We anticipate some price increases in certain product categories, but it's too early to determine the full impact. Regarding the acquisition, we are awaiting approval from the European Commission. Regardless of the outcome, we will remain listed for at least 12 months as per our commitment.
Q: With potential price increases from manufacturers like Apple, do you have a strategy to manage these increases, such as passing them to consumers or cutting margins? A: While we cannot disclose specific strategies, we aim to maintain a balanced offer that meets consumer needs despite potential price increases. We will work with the industry to ensure competitive offerings, regardless of inflationary pressures.
Q: How is inflation in the micro IT sector affecting your business, and do you expect a drop in volumes due to price increases? A: We anticipate inflationary pressures in the micro IT sector, but it's too early to predict the impact on volumes. We are working with the industry to balance customer interests and purchasing power, and we will monitor how this develops in the second half of the year.
Q: Despite strong sales performance, profit margins in France were stable. Do you need top-line growth to restore profit growth? A: Maintaining stable profit margins in France is positive given the challenging environment. To restore significant profit growth, we need to focus on services and top-line growth. Our international operations and the integration of UniEuro are helping to support our overall performance.
Q: What is the impact of the integration of UniEuro on your business? A: The integration of UniEuro is progressing well, contributing to procurement synergies and helping us de-risk our footprint in France. We are on track to deliver EUR20 million in synergies by the end of the year, which supports our overall business strategy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
