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Pac Brands earnings hit


Business, calculatorTroubled clothing maker, Pacific Brands, has cut its annual earnings forecasts as warm weather and weak consumer confidence hits sales.

The company behind Bonds, Sheridan, Berlei and Hard Yakka now expects underlying earnings for 2013/14 to be between $90 million and $93 million, down from its previous forecast of about $105 million.

“A combination of challenging markets, declines in consumer sentiment and a warm autumn, which have been highlighted by other apparel and footwear retailers, have led to lower than expected sales growth and increased margin pressure,” Pacific Brands said in a statement on Tuesday.

Sales are expected to have grown by about three per cent in the financial year.

The company’s shares slumped in early trade, down six cents, or 10.7 per cent, at 50 cents 1007 AEST.

It said its lower earnings and higher spending on a restructure of its business would increase its net debt to between $250 million and $260 million.


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