Reject Shop slashes profit guidance by 40 per cent

The Reject Shop has slashed its half yearly profit guidance for FY19 by approximately 40 per cent.

Initially the retailer hoped to match its 1H18 result of $17.7 million, though, in preparation for its upcoming annual general meeting, provided an updated guidance of between $10 million and $11 million.

However the “extremely weak retail environment” saw sales deteriorate in the first 15 weeks of the year, with comparable sales falling 2.4 per cent, and the past eight weeks seeing a 3.9 per cent fall.

“We understand and acknowledge this is extremely disappointing news for our shareholders,” The Reject Shop managing director Ross Sudano said.

“We are doing everything within our power to manage the business for profitable growth through this extremely challenging consumer environment.”

Sudano goes on to note that decreased consumer spending has been influenced by stagnant wage growth as well as as increases in the cost of expenses, specifically pointing to mortgage rates.

“Despite the challenges with sales in the first 15 weeks, we continue to manage our inventory particularly well and expect to do so over the remaining weeks of the financial year,” Sudano said.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.

Comments

Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside Retail Polls

Do you plan to participate in Halloween this year?
Vote

Twitter

Do you enjoy receiving our daily Newsbriefs, weekly publications, quarterly magazines and attending our Academy eve… https://t.co/JdcO4xcwOH

2 weeks ago

Know an outstanding retailer supplier? Nominate them for the 2020 Retailer Awards: https://t.co/HsvxfGp6aK #RA20https://t.co/FsSnykknRF

3 weeks ago

Do you know any retailer with exceptional customer experience? Nominate them at 2020 Retailer Awards:… https://t.co/Tc3DDjJbFV

4 weeks ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered