Padini to open three more Brand outlets to boost sales
Posted on February 18, 2012, Saturday
KUCHING: Padini Holdings Bhd (Padini) is opening three more brands outlets and multi-brand concept stores in the next six months that will further boost sales going forward.
OSK Research Sdn Bhd (OSK Research) affirmed that the number of outlets had grown to 16 within a five-year period, recording 22.3 per cent for net profit.
Padini had been registering an average 15 per cent to 20 per cent earnings growth since the financial year 2007. In it latest quarterly results, the net profit surged 46.9 per cent year-on-year, mainly fuelled by new store openings and sturdy sales at its existing brands outlets.
Its Brand outlet which tapped the middle to lower-end of the market looked poised to attract more value buyers in the near future. It carried a mixture of in-house and third party brands, showcasing ‘high-volume’ and ‘fast-selling’ garments which were marketed at lower prices and ‘value-for-money’ to attract consumers.
The main topline growth contributor, brand outlets chalked up same-store-sales (SSS) growth of 22.1 per cent which was higher than the average single digit SSS growth of the retail industry.
Apart from expanding its Brands outlets, Padini had three more multi-brand concept stores in the pipeline. The analyst stated that Padini would concentrate mainly in the domestic market as the local market was still lucrative.
It remained conservative to expand in overseas market due to the extra capital expenditure and additional risk. In view of Padini’s good track record, growth story and favourable pricing, it needed liquidity and its market capitalisation to breach the RM1 billion to attract attention from investors. Padini’s fair value was pegged at RM1.80 per share based on the financial year 2012 earnings per share.