Gazal Corporation has addressed the recent speculation around earnings risk for Australian retailers.
In a statement to the market, the company provided a trading update that included results of the joint venture between PVH Brands Australia.
This was for the seven months transitional financial reporting period ended February 3, 2018.
Due to stronger than expected pre-and post-Christmas trading, the joint venture’s total revenues is expected to come in at $144.1 million for the seven months ended February 3, 2018.
Gazal has stated this is a 21.9% increase from the corresponding seven month period from last year, driven in large part by the continued growth of the Calvin Klein and Tommy Hilfiger brands.
“This is expected to contribute to Gazal’s forecast pre-tax profit from continuing operations for the seven months ended February 3, 2018, of between $8.5 and $9.0 million.
“This compares to a pre-tax profit from continuing operations for the same 7 months period last year of $4.8 million.
“It should be noted that this forecast pre-tax profit is before any impairment of the $3.1 million investment in Oroton shares, which is currently being reviewed.”