Retailer Kirk Beauty Outlook Revised To Negative On Temporarily Reduced Earnings And Cash Flow; 'B' Rating Affirmed - S&P Global Ratings’ Credit Research

Retailer Kirk Beauty Outlook Revised To Negative On Temporarily Reduced Earnings And Cash Flow; 'B' Rating Affirmed

Retailer Kirk Beauty Outlook Revised To Negative On Temporarily Reduced Earnings And Cash Flow; 'B' Rating Affirmed - S&P Global Ratings’ Credit Research
Retailer Kirk Beauty Outlook Revised To Negative On Temporarily Reduced Earnings And Cash Flow; 'B' Rating Affirmed
Published Sep 06, 2018
5 pages (2413 words) — Published Sep 06, 2018
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

Germany-based beauty products retailer Kirk Beauty experienced an unexpected earnings and cash flow shortfall during the first nine months of fiscal 2018 on the back of a non-recurring inventory write-down, which led us to revise our base case. Free operating cash flow has (FOCF) turned negative and our adjusted debt to EBITDA is approaching 8x, so we view metrics for fiscal 2018 to be temporarily out of line with the current rating. We are revising our outlook on Kirk Beauty to negative from stable and affirming all our ratings, including our 'B' issuer credit rating. The negative outlook reflects that we could downgrade Kirk Beauty if like-for like sales growth in Germany is not restored, cost pressure continues, and the

  
Brief Excerpt:

...+ Germany-based beauty products retailer Kirk Beauty experienced an unexpected earnings and cash flow shortfall during the first nine months of fiscal 2018 on the back of a non-recurring inventory write-down, which led us to revise our base case. + Free operating cash flow has (FOCF) turned negative and our adjusted debt to EBITDA is approaching 8x, so we view metrics for fiscal 2018 to be temporarily out of line with the current rating. + We are revising our outlook on Kirk Beauty to negative from stable and affirming all our ratings, including our 'B' issuer credit rating. + The negative outlook reflects that we could downgrade Kirk Beauty if like-for like sales growth in Germany is not restored, cost pressure continues, and the company fails to show substantial positive FOCF and EBITDAR coverage of at least 1.5x in fiscal 2019. FRANKFURT (S&P Global Ratings) Sept. 6, 2018--S&P Global Ratings said today that it had revised its outlook on Kirk Beauty One GmbH to negative from stable. At...

  
Report Type:

Ratings Action

Issuer
Kirk Beauty One GmbH
GICS
Personal Products (30302010)
Sector
Global Issuers
Country
Germany
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Retailer Kirk Beauty Outlook Revised To Negative On Temporarily Reduced Earnings And Cash Flow; 'B' Rating Affirmed" Sep 06, 2018. Alacra Store. May 22, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Retailer-Kirk-Beauty-Outlook-Revised-To-Negative-On-Temporarily-Reduced-Earnings-And-Cash-Flow-B-Rating-Affirmed-2095682>
  
APA:
S&P Global Ratings’ Credit Research. (). Retailer Kirk Beauty Outlook Revised To Negative On Temporarily Reduced Earnings And Cash Flow; 'B' Rating Affirmed Sep 06, 2018. New York, NY: Alacra Store. Retrieved May 22, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Retailer-Kirk-Beauty-Outlook-Revised-To-Negative-On-Temporarily-Reduced-Earnings-And-Cash-Flow-B-Rating-Affirmed-2095682>
  
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