German clothing manufacturer Ahlers has lowered its full year forecast after recording a decline in first half net income as business remains slow due to poor weather.

The company said that clothing retail sales failed to recover in the second quarter of the fiscal year and continued to decline.

Net income fell to EUR1m (US$1.3m) over the half ended 31 May from EUR2.7m in the same period last year. The company attributed the decline to falling sales and start-up costs relating to its own retail stores and e-commerce operations.

Sales fell 5% during the second quarter, with 3% of the decline relating to the discontinuation of Gin Tonic Women, while like-for-likes sales fell 2%.

The company has downgraded its full year earnings forecast to come in at or slightly above last year's level of EUR7.3m, down on prior expectations of EUR7.3-10m.

Ahlers' forecast for the second half remains unchanged, with the board expecting a slight increase in sales revenues and a better result. It said this is supported by good incoming orders for the autumn/winter season.