Oroton Group Limited
(ASX:ORL) has downgraded its earnings outlook for the second half of 2015 and now expects FY earnings to fall from $13.3 million in 2014 to $4.5 million.
The leather goods company had forecast earnings growth in its half year announcement in March but now cites a weak third quarter as forcing the downgrade.
CEO Mark Newman says slowing the focus on discounting has cost more than expected but stresses headway has been made in re-establishing Oroton as a true luxury Australian brand.
The company says both the Gap and Brooks Brothers saw lower sales and margin than forecast.
The company also cited $3 million of the earnings decline as coming from a weaker Australian dollar.
Oroton reported a net profit of $2.2 million in the first half of the 2015 financial year.
