Pacific Brands’ CEO John Pollaers told the company’s AGM that workwear sales have been hit by the slowdown in the resources sector.
AAP reports that the company – whose brands include Bonds and Hard Yakka – saw a weakening market for workwear, and that although direct to consumer sales were up, business-to-business sales had declined.
Fairfax reports that Pacific has “become an unlikely victim” of the softening in investment in mining, with workwear sales and no sign of improvement soon.
“There’s a strong correlation in our workwear business to economic conditions, particularly employment and employment churn,” Fairfax reports Pollaers as saying.
“We’ve seen more and more companies in the resources and industrials sector very focused on managing costs,” he said.
”Employment growth and turnover remain low, the resource sector continues to slow and governments continue to reduce their spending.’