Oroton shares slumped almost 14 per cent on Friday after the luxury handbags and accessories retailer announced it expects significantly lower first-half earnings following a 10 per cent decline in year-to-date sales.
With only two weeks left in the first half of Oroton's financial year, the company has revealed its crucial like-for-like sales have so far fallen 10 per cent - a dramatic shift from a 10 per cent increase over the same period a year earlier.
Oroton said on Friday it now expects earnings before interest, taxes, depreciation and amortisation (EBITDA) of between $4.5 million and $5 million in the six months to January 28, compared to $8.9 million for the prior corresponding period.
The group's shares were down 29 cents, or 13.74 per cent, to $1.82 having been as low as $1.61.
Chief executive Mark Newman said the group's already weak like-for-like sales did not improve during Boxing Day and the New Year, and also cited a $1 million hit from exchange rate movements.
However, Mr Newman said the group's strategy to maintain its premium positioning for the Oroton brand was making good progress with like-for-like store sales, excluding discontinued categories, performing strongly.
He said the group's GAP apparel and accessories stores were also hit by lower sales due to a colder than expected spring season, which he said led to "more aggressive discounting and a women's range that did not perform well."
He said same store sales slipped 11 per cent, compared to a six per cent increase in the same period a year ago.
Oroton is due to report its half-year earnings on March 28.
AAP