Oroton earnings marked down
In a trading update on Friday, the handbag retailer said its performance in the Australian market had been “softer than expected” and pointed to challenging retail conditions.
Following the announcement, Oroton Group shares were marked down by 43 cents to $6.89 in late morning trade.
The company predicted full-year earnings of $40 million, including $5 million from a now-ended licensing deal with luxury label Ralph Lauren.
It hopes to make up for the subued local environment by continuing its push into the lucrative Asian market.
A new Shanghai boutique will open its doors by September, and two more new stores in Hong Kong and Dubai will be up and running by Christmas.
The company expects FY2014 earnings of $23-25 million if these projects go ahead.
They said in the “unlikely event” that the deals would not be completed, a projected earnings of $16-18 million was expected.