Best & Less Group’s second half sales to date are down -7.0%, impacted by omicron and floods, but Macquarie notes June Q sales to date are up 2.1% on a record performance in key kids’ and baby departments in April.
The retailer has managed to stock for winter despite shipping delays.
The broker retains Outperform and a $4.10 target, noting the attractiveness of lower price point retailers in the current environment, particularly in baby/kids apparel etc, which is relatively less discretionary and also subject to repeat purchasing.
Target price is $4.10.Current Price is $3.08. Difference: $1.02 – (brackets indicate current price is over target). If BST meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).