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Apple computer retailer Renaissance's first half profit has more than halved due to a lack of stock and increasing pressure from Apple's own direct web sales.
Although revenue for the six months to June 30 grew 14 per cent to $88 million, net profit dropped 53 per cent to $1.2 million.
The amount of product the company had in stock fell 23 per cent to $5.4 million.
"The first six months have been especially challenging," the company said.
"A number of products have been in short supply in June and July. It will be difficult to regain the lost ground, with the likelihood now that we have lost over one full month's sales in the year."
Apple's recent launch of its on-line store in New Zealand is understood to have cut Renaissance's margins.
During the last quarter Renaissance bought MagnumMac and Natcoll, subject to regulatory and shareholder approval, which it expects to add about $800,000 to pre-tax profit, and then $1.5 million annually.
But the company said uncertainty of product availability over the next few months - and a traditional last- quarter seasonal surge - made forecasting the full year's result "difficult".
The company expected an annual net profit before tax of between $4.5 million and $5 million.
Although it posted a record annual net surplus of $6.2 million last year, it warned, in February, that this year's profit would fall short.
The company's 66 per cent-owned start-up venture, Txttunes, was expected to incur a deficit of $250,000 before tax.
Renaissance declared an interim dividend of 4.5c per share.
Shares closed down 7c at 84c.
- additional reporting: NZPA
