AUSTRALIA: Clothing Group Gowings Swings To FY Loss
Men's apparel group Gowings Retail Ltd on Wednesday revealed it swung to a full year net loss from a year-ago profit as it was hit by fierce competition and a tourism slump amid the SARS outbreak.
The company posted a net loss for the 12 months ended August 3 of A$1.7 million versus a profit of A$1.1m last year, although revenue rose by almost a third to just under $A35m.
Chief executive Paolo Gnecchi-Ruscone said the firm was currently implementing a turnaround plans which will see it change its management structure and review its costs structure and product mix.
"Unfortunately, whatever effort or actions we might take in the future we are not able to change the past 12 months," he said.
"We have therefore decided to learn from the past, take incisive actions to change the direction of the business and invest all of out energy in our future and on the opportunities we have in front of us.
"Price matching the intense competition amongst the major city retailers has impacted immensely on our gross margin as has extending our yearly warehouse sale to all stores."
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