Robinson Department Store (ROBINS TB): Neutral Robins will likely face earnings contraction from a slowdown in discretionary spending and margin squeeze. SSSG is set to fall to historic lows of 2%-3% in 2Q13 and 4% in 1H13 (vs 3-yr average of 10%) with no signs of recovery. Waning consumption coupled with the group’s ongoing new store opening could drain its cash pile and prompt an earnings cut. We see downside risk to its current P/E of 28x. More: bit.ly/15Mat5o
Posted on: Wed, 17 Jul 2013 08:14:21 +0000