Pa­cific Brands sur­prises

Townsville Bulletin - - NEWS -

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.

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