PETALING JAYA: Padini Holdings Bhd
expects potential margin improvements from the second quarter of the financial year 2026 (2Q26) should the weakness in China currency persists.
About 60% of its products originate from the republic with procurement costs denominated in ringgit.
TA Research remained optimistic on Padini’s FY26 outlook, underpinned by its steady top line growth, resilient gross profit margins and strategic store expansion plan.
The research house projected a higher gross profit margin of 38.1% in FY26.
It maintained its “buy” call with an unchanged target price of RM2.50 a share, based on a 2026 price earnings ratio of 12 times.
The research house added that the group’s favourable credit standing and larger order volume granted it better bargaining power with suppliers, along with favourable trading terms compared with its competitors.
Padini opened three new stores in 3Q25, including one Brand’s Outlet in Mid Valley (Kuala Lumpur) and two outlets (Brand’s Outlet and Padini Concept Store) in Limbongan, Melaka.
The new outlets in Limbongan are the first to bring Padini Concept Store, Brand’s Outlet and Vincci under one roof.
As of 3Q25, the group operates 164 outlets versus 152 outlets in 3Q24, with fewer than five stores underperforming, according to the research house.
Looking ahead, the group targeted opening five to eight new outlets in FY26.
Padini’s nine-month FY25 revenue and core profit rose by 5.6% and 22.9% year-on-year, respectively, driven by improved in-store sales and a more favourable sales mix.
