Autobarn owner Bapcor has lowered its financial guidance and is expecting a loss for the fiscal first half, as the autoparts retailer has recorded falling sales over the past two months.

In its latest trading update, the company expects statutory net profit after tax (NPAT) for six months ended December 31 to be a loss of $5 million to $8 million. It previously expected statutory NPAT of between $3 million and $7 million for the period.

Bapcor noted that the new guidance includes approximately $19 million pre-tax ($13 million post-tax) of one-off items, but excludes potential impairments associated with the New Zealand segment.

The more pessimistic outlook comes as the company’s trading performance was below expectations in October and November, mainly in its trade segment, with a decline in tools and equipment revenue.

The business has also implemented price reductions to regain market share, which have adversely impacted margins in the short term but are expected to drive volume growth in the future.

Meanwhile, the retail segment saw good performance in October and November, with revenue improving 1.3 per cent thanks to Black Friday sales activities. The networks and New Zealand segments were in line with previous expectations.

“The turnaround of the business is more challenging and takes longer than expected,” said Bapcor CEO Angus McKay. “We are committed to doing the difficult work that will result in a stronger, more sustainable company.”

For the full year, Bapcor expects statutory NPAT to be in the range of $31 million to $36 million. The company said second-half profit should be in line with previous expectations, thanks to operational improvements and the benefits of the pricing realignment measures.