SYDNEY: Things appear to be going from bad to worse at UnderCoverWear, with the company announcing low revenue expectations for the first half of 2009/10.
The publicly listed lingerie and apparel business has announced it expects revenue to be down 10.5 per cent on the same period last year. The revision comes after the company posted a net loss of over $2.2 million in 2008/09, a figure that represented a 162 per cent drop on net profit in 2007/08.
UnderCoverWear management remain optimistic about the second half to June 2010, saying they anticipate an improvement in year on year profit for the period.
The company detailed in its 2009 annual report a range of measures that have recently been implemented to help lift revenue, including a review of freight processess and the roll out of a new payment and delivery program to reduce customers' order cancellations.
UnderCoverWear is a party plan business founded in 1981 and relies on sales representatives to sell its wares in people's homes. The business listed on the Australian Stock Exchange in 2004 and its product range includes lingerie, sleepwear, swimwear, resortwear, outerwear and bridal.