Upscale retailer Kirkcaldie & Stains is forecasting a 15% fall in annual profit due to further markdowns in the value of inventory and reduced sales.The owner the Wellington department store, which traces its history back to 1863, is also affect
Upscale retailer Kirkcaldie & Stains is forecasting a 15% fall in annual profit due to further markdowns in the value of inventory and reduced sales.
The owner the Wellington department store, which traces its history back to 1863, is also affected by the government's decision to halt depreciation of buildings for tax purposes as it currently has an annual depreciation charge on its buildings of $600,000.
It today forecast a reduction in full-year profit before tax from $1.53 million to $1.3 million.
"This revised profit forecast reflects a reduction in sales and a decision to take further unplanned markdowns to ensure that our inventory remains clean for our financial year end position at August 31, 2010," he said.
It expected a $3 milliion one-off adjustment to a deferred tax liability as a result to tax decisions signalled in this year's budget.
The adjustment has no impact on the cashflow, dividend policy or underlying profitability.
The company said its balance sheet remained strong with shareholders' funds in excess of $20 million
