Pacific Brands upgrades profit guidance as Bonds, Sheridan shine...

Pacific Brands upgrades profit guidance as Bonds, Sheridan shine
Date
July 2, 2015 - 8:51AM
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Sue Mitchell

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Full year sales were expected to rise 5.3 per cent with Bonds and Sheridan retail sales leading the way.
Full year sales were expected to rise 5.3 per cent with Bonds and Sheridan retail sales leading the way. Photo: Glenn Hunt
Socks and jocks maker Pacific Brands has upgraded its full year profit guidance by about 10 per cent after strong sales growth in its Bonds and Sheridan brands in the June half.
While major retailers such as Woolworths are cutting profit guidance, Pacific Brands said it now expected underlying earnings before interest and tax for the 12 months ending June to come in between $63 million and $65 million, compared with previous guidance of $57.4 million to $63 million.
The company's new guidance is ahead of market consensus forecasts of $60.1 million.
Full year sales were expected to rise 5.3 per cent and the company, which was wallowing in debt 12 months ago, expected to be net cash positive to the tune of $1 million after selling its work wear business to Wesfarmers last year.
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"The key contributing factors to the improved second half results have been the continued strong performance of Bonds and Sheridan retail, disciplined margin management and cost control and further action on corporate costs following the divestments," Pacific Brands said.
"This has been partially offset by challenges in the discount department store channel."
more to come ...
http://www.smh.com.au/business/reta...-as-bonds-sheridan-shine-20150701-gi33ad.html