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Pacific Brands Limited (ASX:PBG) has launched a strategic review after lowering its earnings expectations for the 2014 financial year due to a combination of challenging markets.
The clothing manufacturer of brands such as Bonds and Sheridan says a fall in consumer sentiment and a warm autumn have resulted in lower than expected sales growth and margin pressure.
As a result the company expects to post an annual earnings result of between $90 million and $93 million before significant items.
The anticipated result represents a 14 per cent drop from the last earnings guidance which was estimated at $105 million.
Pacific Brands has also warned its net debt is expected to increase and the company will book a one-off restructuring cost of between $25 million to $30 million this year.
Pacific Brands blamed impairment and restructuring costs when reporting a net loss of $219 million in the first half of the 2014 financial year.
