Padini to see recovery in the coming months

Kenanga Research said Padini’s gross profit margin can recover to 38% (from 31% in 4Q20) with a better promotion strategy and lower inventory loss with the full quarter sales.

PETALING JAYA: Padini Holdings Bhd is expected to see gradual recovery in the second half of 2020, according to a Kenanga Research report.

The research unit said Padini’s recent fourth quarter results for financial year 2020 (4Q20) had indicated the onset of a gradual recovery in footfalls post-movement control order (MCO), albeit with still tepid demand from tourist-concentrated city stores (such as Suria KLCC and Fahrenheit 88), offset by positive recovery from suburban malls in Shah Alam, Penang and Johor.