KMD - Kathmandu

[Beagle]

Didn’t take long for first earnings downgrade for the year on the NZX to come through ...and who would have thought it would be Kathmandu, and what a shocker it is

Beagle — with 10% more shares probably lower eps (depending on how they fiddle the numbers) and jeez that includes extra from Oboz. Bit of a disaster eh

What does Balance say now ....yes, downgrades come in threes (at least)

Yeah...real shocker mate. For 7 more weeks trading to drag the first 15 weeks that were up on average 6 % (NZ and Aust) down their latest sales results are a real shocker and does not auger well for the remainder of FY19. Last year's eps was 23.9 cps on weighted average shares on issue of 211.261m. I struggle to see them maintaining that eps now...which suggests this goes back to baseline support on the chart in the range of $2.20-$2.40 (PE 9.5-10), maybe even lower until they can prove they can restore eps growth. BIG nasty surprise to kick off the 2019 investment year.

What does this suggest about other retailers November / December trading ?