The Oroton Group has downgraded its earnings guidance for the first half of FY17, pointing to a tough Boxing Day and stiff competition from international brands with steep discounts.

Oroton now expects EBITDA for H1 17 to be between $4.5 and five million, compared to $8.9 million in the first half of FY16.

“With a stronger product offer and more engaging marketing campaigns, sales improved in the lead up to Christmas in the Oroton first detail and department store concession stores,” said Oroton CEO and managing director, Mark Newman. “However, as we moved into Boxing Day and the New Year, Group LFL sales did not improve from the -8 per cent year to date reported at the AGM.”

Oroton advises that with only two weeks trading left in the first half of FY17, group like-for-like sales are now -10 per cent for the year to date, compared to +10 per cent  at the same period last year.

Lower foot traffic after Boxing Day and aggressive discounting from international competitors was compounded by a colder than average spring, it says, which prevented their GAP women’s range from performing well.

Oroton plans to advise the market on its full H1 17 earnings on March 28.