Pacific Brands profit blow

Embattled clothing group Pacific Brands has been dealt another profit blow with a $450.7 million loss for the 2011/12 financial year.

Pacific Brands' loss for the year to June followed a $131.9 million deficit over the previous corresponding period.

Sales revenues at the company fell to $1.3 billion from $1.6 billion.

Pacific Brands' underwear division saw sales dive 15.8 per cent, while workwear fell two per cent and homewares, footwear and outerwear fell 28.8 per cent.

Pacific Brands attributed a majority of losses on $502.7 million in non-cash writedowns of goodwill on its underwear, homewares and workwear divisions as well as $34.1 million in restructuring costs.

As part of its latest trading update, the company announced chief executive Sue Morphet would step down on September 3, following five years in the position.

Morphet will be replaced by former Foster's executive John Pollaers.

While the company expects market conditions to remain challenging in fiscal 2013, gross margins are expected to be in line with 2011/12 with stablised import costs and competitive hedging rates.

Pacific Brands operates brands such as Bonds, Diesel, Voodoo, Everlast, Hestia and Jockey.

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