By James Wells
SYDNEY: It appears that the Sydney business which lost Clive Peeters $2.9 million in the six months to 31 December, is continuing to hurt the entire company.
In late February, when the company reported its half year results, Clive Peeters managing director, Greg Smith, said that the company’s 51.7 per cent increase in profit to $9 million was achieved “despite the high costs of establishing four Sydney stores and a Sydney warehouse during the half, and the high cost of launching the Clive Peeters brand in the Sydney market".
But just six months on, the Clive Peeters business is only expecting a full year profit after tax of $12.1 million to $13.1 million.
In the six months to 31 December 2006, sales fell by 1.1 per cent for Clive Peeters stores in Victoria, while the Queensland business over the period increased by 2.8 per cent.
Rick Hart Western Australian stores were up 19 per cent in the six months to 31 December and overall comparable sales growth for the entire Clive Peeters Limited group was up 6.2 per cent.