Trading updates or results dominated movements over the past week, with The Reject Shop, Boral and ResMed all announcing news.
News from the results were mixed. The Reject Shop announced that sales had risen, but profit would probably be down, as Boral said first half profit would be significantly greater than last year – projected $90 million versus $58 million – but not to expect too much from the second half.
In the good books
Late last week The Reject Shop (TRS) announced that sales for the first half to December 2013 were up $385.5 million or 17.7% over the prior comparative period. However, net profit after tax for the half is expected to be between $16.6 million and $16.9 million, which is down on the $20.1 million for the previous corresponding period. There was a sell off following the announcement but Credit Suisse upgraded the company to Neutral from Underperform, believing the valuation is now more appropriate. Credit Suisse analysts are pointing the finger at an increasingly more competitive environment that seems to be hurting the company in traditional hard goods categories.