Manufacturing News

Fantastic Holdings issues earnings downgrade

 

Furniture retailer and manufacturer Fantastic Holdings has downgraded its full-year earnings forecast.

AAP reports that the downgrade reflects the weak retail sector as well as the costs of “strategic initiatives" that the company has pursued.

The group said in a statement to the Australian Securities Exchange that it expects to report a net profit after tax (NPAT) in the range of $13.5 million to $15.5 million, compared to FY2012 underlying earnings of $21 million.

"The sales strength usually experienced in March and April did not eventuate this year and subdued trading has continued into May," the company said.

Fantastic Holdings Limited operates over 134 stores across five furniture retail chains. One of Australia's largest sofa manufacturers, it also operates a national supply chain to service its retail brands.

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