Oroton has called in banking officials to conduct a strategic review of its business.
So what's going wrong?
1. Lower sales volumes
Oroton is reporting lower sales, primarily during key sales periods, together with lower factory outlet sales. This has magnified the approximate $2 million full year impact of discontinued categories.
2. A fall in the hedge buying rate
A further fall in the hedged buying rate continues to impact expected earnings in the second half, with a full year forecast negative impact of approximately $3 million.
3. Increased GAP losses
GAP's performance has further deteriorated in an aggressive apparel market, especially during key sale periods. This has led to a forecast negative impact on underlying EBITA for fiscal 2017 of approximately $3.5 million compared to the prior year.
