$10m gap for Oroton

STRUGGLING up-market fashion retailer Oroton has warned it will take a hit of more than $10 million relating to the decision to shut down its Gap clothing stores.

But the Australian fashion house says it will report fullyear earnings before tax at the higher end of its forecast.

Oroton says that having finished its 2017 financial year, it can confirm earnings before interest, tax, depreciation and amortisation will be at the high end of its previously downgraded forecast range of $2 million to $3 million on an underlying basis, which strips out “one offs”.

In a statement to the stockmarket, the group said it had improved like-for-like sales – a measurement stripping out the impact of shops that have opened or closed – compared with the first four weeks last financial year.