Following the group’s 1HFY2026 analyst briefing, CIMB Securities noted that Padini’s revenue declined in the first quarter as cautious consumer sentiment weighed on discretionary spending, resulting in negative same-store sales growth of about 6% year-on-year. Looking ahead, CIMB Securities expects earnings momentum to recover in 2HFY2026, underpinned by the timing as gross margin expanded to 39.8%, supported by a stronger ringgit and lower sales markdowns, which allowed the retailer to maintain healthier average selling prices. Previously, management indicated that the higher SST rate could have added between RM10 million and RM20 million to operating costs annually. CIMB Securities maintained its “buy” call on Padini with an unchanged target price of RM2.25, noting that the group’s mass-market positioning provides a relatively defensive demand profile amid economic uncertainty. Consensus estimates remain positive on the stock, with six “buy” calls, three “hold” recommendations and no “reduce” ratings currently recorded.
