Macquarie cuts earnings estimate on Australia's Best & Less Group after weak outlook

Best & Less group

21/06/2023 04:45

** Brokerage Macquarie cuts earnings forecast on apparel
specialty retailer Best & Less Group Holdings Ltd  BST.AX  after
its latest trading update
    ** Lowers FY23 earnings per share estimate by 28.6% with
updated guidance due to soft half-year outlook and elevated
discounting into 1H24 
    ** The company on Tuesday said it expects net profit after
tax between A$3.6 mln ($2.44 mln)- A$4.2 mln (vs prior guidance
of A$10-12 mln and A$21 mln in pcp)
    ** Brokerage says the benefits of industry-wide lower
freight and product costs, will not be realised until first half
of 2024
    ** Higher operational expenditure, particularly staff and
rents has also driven lower 2H earnings - Macquarie
    ** Increases PT to A$1.89 from A$1.70; retains "neutral"
rating 
    ** 2 analysts rate the stock "hold"; their median PT is
A$1.80 – Refinitiv data
    ** Stock down 0.3% this year, as of last close


($1 = 1.4736 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))