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OrotonGroup Limited (ASX:ORL) has warned its first half earnings are likely to drop and full year earnings are expected to come in at the lower end of previous guidance.
The fashion brand retailer has forecast its interim earnings before interest and tax will reach $8 million, down from $10.5 million from the prior period and despite improved like for like sales.
Oroton says the period was impacted by investments made in the new Gap and Brooks Brothers businesses, its Asian expansion and expenses associated with the departure of its previous CEO.
Full year earnings for the 2014 financial year have been forecast to reach between $13 million to $15 million with the second half expected to benefit by lower store and head office expenses. The company plans to release its interim report on the March 11, 2014
Shares in Oroton closed steady at $3.95 before the announcement was made yesterday.
OrotonGroup reported a net profit of almost $27.5 million in the 2013 financial year.
