KGN Charts, page-74

High PE was priced for high margin growth.

The sales growth announced was "ok" at 16% but the 9% earnings growth was underwhelming and may have shattered some assumptions about earnings running ahead of sales.

Whether it recovers or drifts lower possibly depends on the underlying details which may be clearer in the report. If earnings growth has plateaued then I'd expect a further drift a bit lower but if there are a bunch of one offs behind this announcement and earnings resume a double-digit ascent then we might be off to the races again. It's possible they got hit with the lower $A and like many retailers tried to absorb until the rubber band stretched too far and had to take a hit to earnings. And then how has their inventory been valued? Hard to know really.

That's my general guess but I don't expect the situation has improved so far in 2020.

Not advice. All in my humble opinion.