Things continue to get worse for embattled Sydney women’s fashionwear retailer, Noni B (NBL) with yet another earnings downgrade and a loss for 2013-14 that could approach $8 million.
The company told the ASX late Tuesday (after trading had finished) that it now expects a full-year loss at the higher end of earlier guidance, as it cast doubt on a deal to sell all or part of the business, warning it might not happen.
Blaming continuing weakness in retail trading in its speciality sector, Noni B said it now expected an after tax loss of $2.2 million for the year to July 31, before impairments.
The company estimated that the impairment to its intangible assets would be around $5.5 million (revealed in an update in May). That would push the total loss for the year out to close to $8 million.
Noni B had earlier told the market it was looking at a full year loss of between $1.8 million and $2.2 million after tax and blamed the warm autumn, a series of poor management decisions on the timing of discounts in the March quarter, and weaker consumer demand since the budget in May.
The loss of close to $8 million will be significantly worse than the loss of $3.5 million for the 2012-13 financial year.
Noni B is due to report its earnings on August 28.
NBL 1Y – Noni B shares slump as sales slump
There was no word on whether the company had made any progress on a possible buyout. Directors said the board was still conducting a strategic review.
One option is the controlling Kindl family of Sydney could take the company private.
The shares traded at 47 cents on Tuesday. Yesterday they fell more than 8.5% to end the day on 43 cents.
The possible buyout is keeping the shares much higher than they would otherwise be.
