<\/p>\n
By Heather Caitlin P. Ma\u00f1ago, <\/b>Researcher<\/i><\/p>\n
SHARES in Puregold Price Club, Inc. rose last week after the retailer posted higher first-quarter (Q1) earnings.<\/span><\/p>\n Philippine Stock Exchange (PSE) data showed that Puregold was the sixth most actively traded stock last week, with 22.89 million shares valued at P1.06 billion traded from May 11 to fifteen.<\/p>\n The listed retailer closed at P45.85 per share on Friday, up 4.4% from its P43.90 finish per week earlier. The stock outperformed each the services sector\u2019s 3.3% gain and the benchmark Philippine Stock Exchange index\u2019s (PSEi) 0.3% increase through the period.<\/span><\/p>\n Because the start of the yr, Puregold shares have climbed 20.7%, trailing the services sector\u2019s 26.6% growth but outperforming the PSEi\u2019s 1.3% decline.<\/p>\n \u201c[Puregold\u2019s] opening price this week was a direct market response to what was a genuinely strong quarterly print,\u201d Regina Capital Development Corp. Equity Analyst Jasper Timoteo A. Ondap said in an e-mail.<\/span><\/p>\n He said the corporate\u2019s net income and consolidated net sales \u201cgot here in well above what we had penciled in.\u201d<\/span><\/p>\n Aniceto K. Pangan, equity trader at Diversified Securities, said the stock\u2019s gains were driven by \u201cdouble-digit revenue growth\u2026 and greater than 20% income growth within the [first quarter].\u201d<\/p>\n In a regulatory filing on Wednesday last week, Puregold reported a 23.7% increase in attributable net income to P3.26 billion within the January-to-March period from P2.64 billion a yr earlier.<\/span><\/p>\n Gross revenue rose 12.1% to P59.76 billion from P53.32 billion previously.<\/p>\n In a separate statement, the corporate said first-quarter growth was supported by positive same-store sales growth (SSSG). Puregold stores posted a 5.4% increase as a result of higher basket sizes, while S&R Warehouse Clubs recorded 12% growth on higher customer traffic.<\/p>\n Puregold said earnings growth was \u201cdriven by strong topline growth and complemented by improvement in gross margins.\u201d<\/p>\n Mr. Ondap said S&R\u2019s performance may reflect \u201cmore frequent, normalized shopping relatively than bulk buying.\u201d<\/p>\n Despite the retailer\u2019s strong first-quarter results, analysts said geopolitical tensions within the Middle East may proceed to weigh on consumer spending and inflation in the approaching months.<\/span><\/p>\n \u201cWe may expect the expansion to be carried over within the [second quarter] on a lighter effect as a result of the high inflation effect of the Middle East conflict that negatively affects disposable income in March, April, and going forward,\u201d Mr. Pangan said in a Viber message.<\/span><\/p>\n He added that inflationary pressures could persist if disruptions involving the Strait of Hormuz proceed to affect global markets.<\/p>\n Mr. Ondap said Puregold\u2019s staples-heavy product mix could provide some protection as consumers shift toward lower-cost goods, although S&R\u2019s discretionary segments may face greater risks if household spending weakens further.<\/span><\/p>\n \u201cWe\u2019ll must see how [the second quarter] plays out to see the complete effect of the conflict to [Puregold\u2019s] performance,\u201d he said.<\/span><\/p>\n \u201cThe approaching months remain shaky if macro conditions don\u2019t improve, as a result of tighter spending, a shift to budget options, and better input and transportation costs, all of which can hit consumers and retailers alike.\u201d<\/span><\/p>\n For the subsequent trading week, Mr. Pangan identified immediate support at P45.90 and resistance at P47.15.<\/span><\/p>\n Mr. Ondap placed support between P43 and P43.90, while resistance levels were seen between P47 and P49.<\/span><\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" PHILSTAR FILE PHOTO By Heather Caitlin P. Ma\u00f1ago, Researcher SHARES in Puregold Price Club, Inc. rose last week after the retailer posted higher first-quarter (Q1) earnings. Philippine Stock Exchange (PSE) data showed that Puregold was the sixth most actively traded stock last week, with 22.89 million shares valued at P1.06 billion traded from May 11 […]<\/p>\n","protected":false},"author":1,"featured_media":336769,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[19523,51864,462,953,17489,1388],"class_list":["post-336768","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-climb","tag-firstquarter","tag-higher","tag-profit","tag-puregold","tag-shares"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/336768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/comments?post=336768"}],"version-history":[{"count":2,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/336768\/revisions"}],"predecessor-version":[{"id":336771,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/posts\/336768\/revisions\/336771"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media\/336769"}],"wp:attachment":[{"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/media?parent=336768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/categories?post=336768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ebiztoday.news\/index.php\/wp-json\/wp\/v2\/tags?post=336768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}