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Shoe retailer slumps

 

athletesfootShares in shoe retailer RCG Corporation have plunged as its earnings take a hit from the federal budget’s impact on consumer spending, and a warm autumn.

The company runs The Athlete’s Foot stores and is also a wholesaler of brands including Saucony, Merrell, Cushe and CAT.

It has downgraded its earnings growth forecast for the financial year due to a weaker than expected performance in its wholesale business, driven by a drop in consumer confidence in reaction to last month’s federal budget.

An unseasonally warm autumn had also caused poor sales of winter stock, it said.

RCG shares were down 8.5 cents, or 12.2 per cent, at 61 cents at 1045 AEST, their lowest level in nine months.

The company expects earnings to grow by between 10 and 12 per cent from the previous year’s $15.1 million, down from its previous forecast of 15 per cent growth.

It said The Athlete’s Foot was performing in line with expectations, with like for like sales in the 11 months to May up 2.75 per cent.

AAP

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