Festive cheer for retailers
CONSUMER confidence eased in the past week but the ongoing improvement in labour market conditions may yet spell good news for retailers over the holiday season.
The latest ANZ- Roy Morgan Consumer Confidence Index showed a 1.2 per cent slip to 115 in the week to November 26 on doubts about the current and future state of the economy.
But the slight pullback did not reflect the overall positive trend in consumer sentiment, according to ANZ head of Australian economics David Plank.
“A sustained improvement will likely bode well for holiday season sales,” Mr Plank said.
Mr Plank said improvements were driven primarily by ongoing labour market strength.
This was supported by leading business indicators that point to further improvements in labour market conditions. OROTON shares have been put in a trading halt as the struggling fashion retailer comes close to finalising a strategic review.
It follows Oroton’s announcement in August that it would end its franchise agreement with American fashion label Gap.
That revelation came after Oroton directors revealed earlier this year that they were considering buyout offers.
In a statement to the Australian Securities Exchange yesterday, Oroton said it had requested a halt in trading of its shares as it came “close to finalising” its strategic review process.
An announcement would be made tomorrow, if not sooner, the group said.
Announcing the review in May, Oroton directors said they had engaged investment bank Moelis & Co to carry out a strategic review.
At the time, the group downgraded its forecast for full- year earnings before interest, tax, depreciation and amortisation to a range of $ 2 million to $ 3 million on an underlying basis, which excludes one- off costs.
The previous year, that tally clocked in at about $ 10 million.
Oroton posted a net loss of $ 14.26 million for the year to July 29 – a dramatic blowout from its $ 3.44 million loss the previous year.
In a statement to shareholders, Oroton said the review would be focused on “maximising value for the company and its stakeholders”.
In June, the retailer said it had received buyout offers.