Kenanga upgrades Padini on 2H recovery prospects

KUALA LUMPUR: Kenanga Investment Bank Research upgraded Padini Holdings Bhd to "outperform" as it expects the fashion retailer to see a gradual recovery in the second half of the year with support from sales during the festive periods.

The research house said it believes Padini's gross profit margin will be able to recover to a comfortable level of 38% from 31% in the recently concluded quarter with a better promotion strategy and lower inventory loss with the full quarter sales.