This is an excerpt from their market update on 21/8/08. There is also an $8m exposure to ABC Learning hanging over the company at the moment which is not helping their cause. There has been no other guidance provided.
The company re-affirms its guidance of approximately $31m EBITA for the
financial year ending 31 December 2008. The company expects that full
year trading in FY2008 will be affected by the following influences: -
- Positive gross margin initiatives, including inventory reduction, are
anticipated to have the greatest effect in the second half of FY2008
- Increased input costs from China are having a detrimental impact on
margins, especially in apparel
- Consumer sentiment in discretionary spending is of concern and it is
imperative we maintain a vigilant watch on costs and inventory in
order to protect margins
- The company remains cautious of the current retail environment and
the state of consumer demand in the lead up to the pivotal Christmas
period.
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