Sales at outdoor equipment and clothing retailer Kathmandu have risen slightly over the last year, but have fallen short what was forecast when it listed on the stock exchange last year.
Shareholders reacted badly to the news, with the share price falling about 10% on Wednesday.
Kathmandu's latest trading update reveals same store sales growth of 1.3% in the year to July, below what was forecast in the prospectus issued last year.
However, sales from all stores exceeded forecasts by $5.5% million, rising 13.9% from the previous year to $245.5 million.
Excluding one-off costs relating to its listing, before tax earnings are expected to come in between $47 - $48 million.
While this is up on last year's performance, it too falls below the forecast $50.6 million.
Gross proft margin is expected to about 63%, which is slightly less than last year and below forecasts.
Chief executive Peter Halkett says the last four months of the financial year were challenging for the retail sector in its markets of Australia, New Zealand and the United Kingdom.
Shares in Kathmandu have fallen 21 cents to $1.84.