Margins to be key focus in FY25 for Aussie discretionary firms - Goldman Sachs

JB Hi-Fi

05/08/2024 05:54

** Goldman Sachs says margins will be a key focus in FY25
for Australian discretionary firms given higher promotions,
labour and rental costs
    ** Brokerage sees low-to-high single digit sales growth in
FY25 for discretionary firms
    ** Says recent data has suggested retail sales improved on a
seasonally adjusted basis for April-June qtr 
    ** Brokerage selects Super Retail  SUL.AX  as its top pick
for 2H24 earnings given leading sales and earnings outlook;
reiterates 'buy' rating
    ** Brokerage sees JB HI-FI's  JBH.AX  valuation as
expensive; reiterates 'sell' rating
    ** Shares of SUL and JBH fall 2.8% and 3.9%, respectively,
amidst a 3.2% fall in the benchmark index  .AXJO 
    ** "Market competition is intensifying against a still
fragile consumer backdrop" - brokerage
    ** SUL unchanged this year as of last close, while JBH up
28.5%
   

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))