Pacific Brands surprises
AN unexpected earnings upgrade from underwear and bedding maker Pacific Brands could be the first sign its six years of turmoil are finally in the past.
Shares in the owner of the Bonds and Sheridan brands soared 51 per cent after it improved its earnings expectations due to strong sales in May and June and tight cost controls.
Full- year underlying earnings are now expected to be between $ 63 million and $ 65 million, up from its previous guidance of $ 57 million to $ 63 million.
Some brokers had been expecting Pacific Brands to join a number of other retailers that have downgraded earnings guidance as they sign off on the financial year.
Pacific Brands shares gained 16.5c, or 50.7 per cent, to close at 49c, their highest value in more than four months.
But the shares are still well below the $ 2.08 they were worth before the company announced an overhaul in 2009, and a full- year loss is still widely expected after asset writedowns in the first half.