Hellaby slashes outlook in face of falling retail sales

Amid gathering signs of an economic slowdown, Hellaby Holdings yesterday slashed its full-year outlook by 15 per cent, blaming poor sales at its flagship retail operations, including the Hannahs footwear chain.

Sales for the first three months of this financial year at its retail businesses, which make up about 40 per cent of earnings, had come in below expectations, Hellaby said.

"It is likely that the underlying earnings for the year to June 30, 2006, may be some 15 per cent below the $20 million achieved last year."

Yesterday's news comes just two months after managing director David Houldsworth said he expected a "comfortable increase" in profits for the year.

The company said the performance of its retail divisions seemed "to have been subject to the same influences which have affected the retail sector generally".

A more definitive estimate of the out-turn for the year would be made after Christmas and New Year trading.

Hellaby shares plunged 40c to close at $5 on yesterday's news.