KUALA LUMPUR: Padini Holdings Bhd
’s streak of poor earnings is expected to continue through 2021 as its brick-and-mortar outlets will be severely affected by MCO 3.0 while overseas outlets face risk of closures.
Following a briefing yesterday, Kenanga Research said it expects further store closures within the year as it continues to struggle with its performance during MCO 3.0.
This is expected to result in revenue compression as outlet sales comprise about 93.2% of the retailer’s nine-month financial year 2021 (9MFY21) total sales.
“We feel that its sizeable online ticket size of RM50–80 and its fast fashion offerings make it more suited for omni-channel distribution, ” said Kenanga, while noting that e-commerce sales in 9MFY21 grew to 1.2% from 0.3% in the same period last year, ” it said.
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