Angus & Coote succumbs to retail slump

Jewellery retailer Angus & Coote is predicting its full year profits to be lower than last financial year after reporting disappointing sales results for June and July.
The company, which also operates jewellery retail chains Goldmark and J's Room, is now anticipating profits before tax to be in the range of $10 million and profits after tax to be approximately $7 million.
Company secretary Paul Witheridge attributed the expected loss to the group's ailing Melbourne and Sydney duty-free airport outlets which have been "significantly impacted by the continued deterioration in the tax free retailing market".
Softer trading conditions in June and July were also blamed for the decline in sales revenue along with the start-up costs associated with the company's expansion into its new chain of fashion jewellery stores dubbed J's Room.
The group's second half result and full year EBIT from constant businesses are both expected to be consistent with results achieved last year, excluding the new J's Room business and airport stores.
Despite the disappointing profit forecasts, Witheridge maintains there are further growth opportunities for the company.
"While signs of improvement in consumer sentiment are not presently evident, the group's gearing is low, balance sheet remains strong and core, ongoing businesses are well positioned for future growth," said Witheridge.