Softer retail sales hits Pod's full year forecast

A softer mid year sales period has led textiles company Pod to cut its full year profit forecast.

The company, 25 per cent owned by Christchurch businessman George Gould, said its June year net surplus after tax but before goodwill amortisation would be between $3.2 million and $3.6 million -- down from the $4 million it predicted in February.

"A slow-down in the domestic retail sector has resulted in sales for May and June, traditionally strong months for the group, being lower than expected," the company said.

"This combined with pricing pressure from customers and investment in building infrastructure for future growth, has meant that profit for the full-year will be lower than indicated earlier."

Pod's directors expected slower domestic retail conditions to continue into the first quarter of the new financial year, but they remained confident about the company's future prospects.

Pod shares last traded at $1.19 having ranged between $1.00 and $1.77 over the last year.

- NZPA