Wolter Peeters
“In our experience, earnings downgrades driven by margin resets carry share price reactions often deeper and more sustained. Litmus test ahead.”The broker is anticipating that the effect of COVID-19 on mobility, consumption and disruption over the key Christmas trading period and start of 2022 will feature heavily in interim results commentary.
“The lead and lag effects will be well on display and at the very least some profit margin stress testing should be the order of the day,” Mr Nicol said. Goldman Sachs is expecting omni-channel retailers to outperform the sector because of their ability to capture consumer demand through both online and in-store streams.meaningful hit New South Wales and Victoria's lockdowns had on offline retailers.
“We expect staffing challenges to have disproportionately impacted offline/omni-channel retailers; that said, we believe congestion in the logistics network to have presented separate challenges for online retailers.”