Globe International cut its earnings outlook for the fiscal year ended June 30, 2005 based on preliminary unaudited group management accounts. Net profit for the year is expected to be in the range of A$5.0 million to A$5.5 million against previous guidance forecasting results in the A$8 million to A$10 million range. Globe expects to announce its audited results in August. Revenue for the full year is expected to show an improvement of approximately 10% over last year, but to still fall below expectations of A$217 million.
Matt Hill, CEO of Globe, said that the lower than anticipated profit was a result of weaker than expected trading conditions in May and June, resulting from a contraction in retail demand in Australasia, a delay in key footwear shipments, temporary sales shortfalls from Dwindle brands, and a delay in some European pre-book sales.
The reduced earnings guidance had an expected effect on Globe stock, down 2.9% for the week to A$0.33.