Breville shares climb on positive Q1 update, manufacturing transition
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The news: Breville shares jumped nearly 7% in morning trade before paring some gains, after delivering a positive trading update this morning.
The numbers: Shares were up 2.1% to $30.04 at 12:30pm AEDT. The stock is down 15% this calendar year.
The context: Speaking to shareholders at Breville's annual general meeting this morning, CEO Jim Clayton said the company's new products are performing well, and expansions to China and the Middle East have proved successful.
Citi analyst William Park said Breville's move to take manufacturing outside China "appears on track", with the company reiterating its target 80% of gross profit dollars for US products to be outside of China by the end of the first half.
Breville's share price dropped around 34% between February and April this year as the company warned of slower earnings growth amid new US tariffs on key sourcing countries.
The sources: ASX, Citi research
