0022 GMT - Another slide in KMD Brands' earnings isn't positive but investors in the New Zealand-based retailer should take comfort that sales are reaching an inflection point, Forsyth Barr says. KMD Brands signaled 1H Ebitda of NZ$1 million-NZ$3 million, below consensus hopes as gross margins compressed and marketing budgets rose. Still, analyst Paul Laxton Koraua remains bullish about the stock. "We continue to view the risk-reward as attractive, given improving sales momentum and the significant operating leverage in this business," Forsyth Barr says. It notes KMD Brands is trading at around 9.4X two-year forward PE, below its long-run history. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
January 27, 2025 19:22 ET (00:22 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.