CLSA has released a research report maintaining its "Outperform" rating on JNBY (HKEX: 03306) with a target price of HK$25.

The brokerage forecasts the company's sales and net profit to grow by 8% and 9% respectively in the 2027 fiscal year.

According to the report, management stated that the core JNBY brand is targeted to achieve positive growth in the 2027 fiscal year, while younger brands are expected to record high single-digit growth, with LESS remaining the primary growth engine.

In addition, retail sales have recorded high single-digit year-on-year growth from July to date, with online performance continuing to outperform offline channels.

The company prioritizes store productivity over expansion, opening approximately 200 stores and closing around 200 stores annually to optimize its network, with more than 70% of stores achieving profitability.