It looks like the recent downturn in retail spending as a result of budget concerns and warm weather has been brushed aside
It looks like the recent downturn in retail spending as a result of budget concerns and warm weather has been brushed aside. Figures released today from Dun and Bradstreet show 4th quarter sales expectations have spiked to record levels. The sharp lift in the sales index has been driven by a particularly positive outlook from the services sector, of which 63 per cent expect increased selling during Q4 2014 while 11 per cent are anticipating a decline. These figures have been backed up to an extent in the recent trading update from Kathmandu (KMD), who now look on track to deliver an improved FY14 result. Morgans analyst Jo Little says, with the group now expecting EBIT to be in the range of A$62.5-65.5m (vs A$63.4m in FY13 and well ahead of recent guidance of a 10-15% fall). Morgans have raised their price target for KMD, full post here: (VIEW LINK)
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