A day after the Australian Stock Exchange queried a sharp rise in its share price, clothing and footwear company Pacific Brands has reported a $A219 million first-half loss.
Pacific Brands - which owns the Jockey, Bonds, Sheridan, Hush puppies and Clarkes brands - says the turn-around from a $A39 million profit in the previous first half reflects asset write-offs and restructuring costs.
Pacific Brands says its sales for the six months to December rose 2.7 percent, its first sales increase in five years.
Driving the sales increase were more than 20 percent growth in its Bonds brand, 15 percent higher Sheridan sales and continued expansion in retail and online.
Nevertheless, net profit before one-off costs still fell 15 percent to $A33 million.
Chief executive John Pollaers says he wants the company to progressively stabilise earnings and to return to growing both sales and earnings.
The company is achieving some encouraging results but the pain being felt in the Australian manufacturing, construction and resources sectors is still hurting it.
Mr Pollaers expects sales to be higher for the whole second-half, gross margins to be down and operating earnings to be down by about 14 percent.
He also expects to book further restructuring costs in the second half.
