Upmarket retailer OrotonGroup says it’s felt the impact of the cautious consumer, even at the top end of the retailing curve.
The company’s AGM in Sydney yesterday was told by CEO Sally Macdonald that "So far, trading conditions in the first few weeks of this new financial year are generally soft.
"The market is heavily discounted but our strategic objective remains long term brand development and elevation coupled with profit growth first and foremost.
"We continue to be vigilant to what may lie ahead and are confident our strong brands and our multi channel model – across online, wholesale, full price stores, factory outlets and concessions, and now multiple countries, too, – provides us with the flexibility to trade well and optimise our financial and brand performance.
"As always we look forward to the exciting Christmas trading period ahead. December and January are the company’s largest and most important months."
She said that trading conditions so far this financial year were "similar to last year".
There were no numbers or forecasts given to the AGM.
In the year to July, OrotonGroup had a record net profit after tax of $23.0 million.
The company opened six new Oroton stores were opened in FY10, four new stores have opened since the start of the new financial year and a further store is scheduled to open in the second half of FY11.
The shares fell 9c at first to $7.91, and then regained most of that loss to end down 2c at $7.98.
Despite a small profit upgrade yesterday, shares in TPG Telecom fell more than 2% at one stage as investors seemed to shrug off the news.
The shares ended down 2c at $1.47 in yesterday’s weakened market, a fall of just over 1%.
That was after the company upgraded its full year earnings guidance to a range of $215-225 million after a good start to the financial year.
TPG had previously forecast earnings before interest, tax, depreciation and amortisation of $210-216 million in 2010-11.
The company told the AGM that it expected earnings in the first half of 2010-11 to rise to $94 million, up from $77 million in the previous corresponding half.
TPG, through subsidiary PIPE Networks, supplies a high-speed fibre based network to Vodafone and 3 mobile.
TPG acquired Brisbane-based infrastructure operator PIPE for $373 million during fiscal 2010.
Earlier this year TPG shares were sold off when the company’s 2009-10 profit result fell short of estimates, rising to $55.73 million in the 12 months to July 2010.
