Pac Brands rreturns to profitability
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Clothing retailer Pacific Brands has returned to profitability, but says sales are weak and will remain so in the coming months.
The company made a net profit of $38.9 million in the six months to December 31, up from a $362 million loss in the same period the previous year.
The loss was caused by major restructuring at Pacific Brands, which the company on Monday said was delivering results despite challenging economic conditions.
Sales in the six months to December were down 6.6 per cent on the previous corresponding period, with growth in its underwear brands Bonds, Berlei and Jockey offset by weak sales in workwear brands Hard Yakka and King Gee.
Pacific Brands said conditions made it difficult to offer financial forecasts for the full financial year.
"Earnings outcomes will be largely dependent upon market conditions, associated sales performance and implementation of the new strategy over time, and may be impacted by ongoing restructuring and rationalisation," the company said in a statement.