By Connor Hart

Shares of Global Blue Group slid after the company lowered its adjusted earnings outlook, citing highly unfavorable macro- and microeconomic trends.

The stock fell 5%, to $5.94, in midday trading Friday. Shares are up 26% since the beginning of the year.

The Swiss company--which provides transaction-processing services to merchants, banks, governments and travelers--before the bell said it now expects adjusted earnings before interest, taxes, depreciation and amortization of between 185 million euros ($193.8 million) and EUR205 million in its FY24/25, compared with a prior outlook for adjusted Ebitda of more than EUR200 million.

In response, two analysts polled by FactSet lowered their adjusted Ebitda guidance to EUR195.1 million from EUR200.6 million.

Chief Executive Jacques Stern said the company has outperformed in the luxury market due to its exposure to affluent and high-net-worth international shoppers, as well as its implementation of management-technology initiatives.

However, this outperformance wasn't enough to offset the broader luxury-market slowdown, and the company's decision to accelerate EUR5 million of investments in future growth initiatives, he added.

In its fiscal second quarter, Global Blue Group said adjusted Ebitda rose 25%, to EUR58.7 million. During the same frame, revenue rose 17%, to EUR132 million.

Also on Friday, the company increased its share-repurchase program to $15 million from $10 million, and extended it through Nov. 30, 2025. The program, announced in August, was originally set to be valid for six months.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

November 22, 2024 13:46 ET (18:46 GMT)

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