Padini proposes share buy-back as stock trades 49.5 per cent below peak

Padini Holdings Bhd will put a proposed share repurchase mandate to shareholders at its Nov 25 annual general meeting after a sharp decline in its stock. The Malaysian fashion retailer's shares were trading at RM1.02, a decline of 49.5 per cent against the RM2.02 closing peak recorded on Feb 11.

The proposed limit is 98.69 million shares. Purchasing that maximum at the prevailing price would require an estimated RM100.66 million, or about 30.5 per cent of retained profits. Those profits totalled RM329.73 million at June 30, 2026. No decision has been made on the purchase volume, expenditure or timing.

In its Bursa Malaysia filing, Padini said the proposal would offer flexibility in managing capital and financial resources. Directors could approve purchases when they judge the shares to be undervalued, after considering market conditions and the company's finances.

Selling intensified in April after several group bank accounts were frozen by the Malaysian Anti-Corruption Commission during an investigation involving external counterparties. The freeze ended in July, but an unexpected quarterly loss put the stock under further pressure in August. It reached RM1 in September, its lowest in nearly six years.

For its fourth quarter ending June 30, 2026, Padini reported a RM9.64 million net loss against the previous year's RM6.98 million net profit. Revenue dropped to RM365.94 million from RM392.1 million, a 6.7 per cent decline. Weaker sales and increased operating costs weighed on earnings.

Padini said funding could come from internal resources, borrowings or both. Shares bought could be cancelled, kept in treasury, resold or issued to shareholders as dividends. The retailer currently has no treasury shares and undertook no repurchases during the preceding 12 months.