Glonghui, December 19 | According to Macquarie's rating report, Macquarie's total retail sales and wholesale operations in the third quarter both rose by double digits from a yearly low, reflecting continued improvement in retail sales trends. However, based on the high base for the fourth quarter, the bank lowered the company's revenue forecast for fiscal year 2024 by 2%, reflecting a cautious view on future sales forecasts. According to the bank, the inventory sales ratio for the past four months was low and remained the same from quarter to quarter, mainly to cope with the increase in inventory volume due to the upcoming holiday promotions. The bank believes that the company's narrowing of discounts to a lower number of units per year and higher direct retail growth will support its gross profit margin, but believes this may be partially offset by reduced brand support from reopening at the beginning of this year. According to the bank, management pointed out that the number of net stores opened increased from year to year, while the number of stores opened increased on a quarterly basis and there was less closure, which means that the second half of next year may see a positive increase in store opening momentum. The bank lowered its target price from HK$8 to HK$7.8, maintaining its rating as “outperforming the market”.