The Boxing Day and New Year sales didn’t work for luxury retailer Oroton.
With only two weeks of trade left of the company’s first half of the 2017 financial year, like-for-like sales are down 10% compared to being up 10% at the same time last year.
The company now expects first half EBITDA (earnings before interest, tax, depreciation and amortisation) to be between $4.5 million and $5 million, down from $8.9 million the same six months of 2016.
The company says there were fewer customers from Boxing Day onwards and sales in GAP stores were down 11% due to a colder than expected Spring leading to more aggressive discounting.
CEO Mark Newman says sales improved in the lead up to Xmas, but Boxing Day and New Year sales didn’t.
However, he says the company’s strategy of positioning the core Oroton brand as a premium product is making good progress.
The retailer has been re-establishing its brand in the luxury end of the market, smartening up its stores and ending heavy discounting.
Oroton is due to make its first half earnings announcement on March 28.
In 2016, revenue was up 3% to $136.4 million and net profit 31% to $3.4 million.