Shoe and clothing retailer Colorado Group Ltd today reported a 41 per cent drop in half-yearly net profit to $A7.6 million.

Group revenues were A$210.3 million, nearly flat on the A$209.6 million) posted in the first half of 2004. Comparable store sales decreased in the low single digit range the company said.

Colorado group managing director Mr Rowan Webb said the group's results reflected a disappointing winter trading performance impacted by a slowdown in consumer spending and an unusually high level of competition and discounting.

The net profit result was also impacted by transitions to new international accounting standards.

Colorado, which owns the Mathers, Jag and Diana Ferrari store brands, expects a stronger second half, and says it is gearing up for the Christmas period with 30 new stores and an extensive refurbishment programme.