Endeavour Group (ASX:EDV) is likely to see a bigger-than-expected impact on sales from the resolved industrial strike at Woolworths Group's (ASX:WOW) distribution centers, as the stores affected by the strike have only just started to be serviced this week, Jarden Research said in a Tuesday note.
On Thursday, the company said it expects to suffer an initial sales impact of roughly AU$25 million due to the strike-led closures of Woolworths' distribution centers.
The retail drinks and hospitality business also said it expects its sales loss to be exacerbated given that the timing of the disruption is during the crucial December period.
However, the investment firm added that due to Endeavour's strong market position, enhanced direct-to-store deliveries, and absence of perishable products, the impact will not be as severe as Woolworths Group's impact on sales.
Jarden Research maintained its neutral rating and price target of AU$5 on Endeavour Group.
Endeavour Group's shares fell almost 1% in recent Friday trade.
Price (AUD): $4.26, Change: $-0.03, Percent Change: -0.58%
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