One of Australia's leading clothing retailers, the Gazal Corporation Limited, has announced that it is preparing for a difficult second half to the financial year after reported a very small rise of just 2.5 per cent in its first half earnings.

For its first half results the company reported net profits of A$6.45m compared to the A$6.29m reported in the same period last year. The company was also able to report a small increase in sales for the period from A$87.15m last year to A$96.42 this year.