Clive Peeters is set to report their half year results on the 27th February 2009 however analysts are tipping a net loss of $0.4M which represents a decline of 104%. Sales are believed to be down 16.3%.
Contributing to the losses is a major downturn in NSW with analysts tipping losses in this State to be between $1M and $3M.
One analyst writes in a briefing to vendors “We expect performance from NSW to be disappointing, with the tough trading environment, the large upfront marketing costs and the lack of brand traction to be the main contributor of the A$1.7m EBIT loss. We have assumed no interim dividend”.
They added “Losses in NSW – We expect losses in FY09 and FY10 of A$3m and A$1m, respectively. An update on conversion rates and a discussion of potential changes to store locations (closure of some poorly located stores, opening better located stores) is expected. A weak trading environment and store openings may put further constraints on cash flow.
Several vendors that ChannelNews has spoken to claim that they are waiting for the KPMG report into the operations of Clive Peeters.