$BBN announced their HY results this morning, providing the next peak into retail-land.

Interestingly the rate of decline improved in Q2 (-5.3% LFL pcp) over Q1 (-8.8% LFL pcp).

Interesting to see how this reads across others.

Disc: Not held in RL or SM

More downgrades in retail-land. This time its category-killer $BBN.

FY23 Trading Update Market down 22% (trading this morning around -20% to -25%)

LFL sales expecting to be down -4% to -5% for the FY.

The guidance for comparable "pro forma" NPAT is $13.5m - $15.0m down from $21,5m - $24.0m

I think this is one of the first examples in the sector that starts to demonstrate the heavy negative operating leverage of retailers with a high CODB and low operating margins.

Still, given the heavy discounting of $BBN over the last year, seeing consensus TP fall from $6.39 to $2.81 (before the next updates), I really do wonder if a further 20% markdown to $1.39 isn't over-doing it?

I don't really follow this stock (as I always felt it was over-hyped), but I am interested as part of my overall monitoring of retail.

Eventually, the sector will present some fantastic buying opportunities. I'm not implying that's now, but the time will come.