Why SEB (ENXTPA:SK) Is Down 19.0% After Lowering Its 2025 Guidance Amid Soft Demand

• In the past week, Groupe SEB revised its full-year 2025 guidance, expecting stable to slightly positive organic sales growth and lowering its operating result forecast to €550 million–€600 million due to increased competition and softer demand in Europe and the US.
• This guidance update represents a meaningful shift as it reflects heightened pressures in key geographic markets, prompting a more cautious stance for year-end performance.
• We'll examine how SEB's reduced outlook, especially the lower operating result forecast, impacts its previously optimistic investment narrative.

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SEB Investment Narrative Recap

At the core, investors in Groupe SEB must believe in the company’s ability to leverage its global brand portfolio and continued innovation to maintain steady growth despite economic headwinds. The recent downward revision in annual guidance, due to rising competition and lackluster demand in Europe and the US, could weigh on what was previously seen as a potential short-term earnings recovery; this now emerges as the key catalyst and the biggest risk for the business in the near term.

The third-quarter 2025 sales outlook, indicating a slight organic decline and results below expectations, is especially relevant here. It not only supports the revised full-year guidance but also underscores the market pressures currently facing SEB, reinforcing the need for caution as Q3 results approach and signaling to investors the importance of tracking near-term performance shifts.

However, against expectations of innovation-led growth, investors should pay close attention to ongoing margin pressures arising from...

Read the full narrative on SEB (it's free!)

SEB's narrative projects €9.3 billion revenue and €529.7 million earnings by 2028. This requires 4.1% yearly revenue growth and a €397 million earnings increase from the current €132.7 million.

Uncover how SEB's forecasts yield a €101.60 fair value, a 96% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community see fair value for SEB shares ranging from €95 to €153.37. Market participants weigh this diversity against rising competition and lower forecasts, which could reshape the outlook for sustainable growth, explore several perspectives before making your call.

Explore 4 other fair value estimates on SEB - why the stock might be worth over 2x more than the current price!

Build Your Own SEB Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SEB research is our analysis highlighting 2 key rewards and 5 important warning signs that could impact your investment decision.
• Our free SEB research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SEB's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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