In the first quarter same-store sales growth for Rip Curl was 26.8%, with Kathmandu down -26.8%, wholesale down -14.4% and online up 37.0%.
Therefore, the flat operating earnings outcome is solid, in Credit Suisse’s view, and wage subsidies are likely to have simply offset the impact of the Melbourne lockdown.
The strength of Rip Curl is critical for the first half, while the travel category weakness is expected to continue. Credit Suisse reiterates an Outperform rating. Target is unchanged at NZ$1.70.
Current Price is $1.26. Target price not assessed.