Kirkcaldies cuts guidance by 15%

Kirkcaldie & Stains, Wellington’s upscale department store, has lowered its full-year profit guidance by 15%, citing unplanned discounting to put its inventory in order.

Profit will be $1.3 million in the year ended August 31, lower than the $1.53 million previously flagged. The company’s balance sheet remains strong with shareholders funds in excess of $20 million, it said in a statement.

The retailer’s shares last traded unchanged at $2.70.

The iconic store owner on Lambton Quay is completing a mid-winter annual sale where business shirts are half price. It said the 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 31 August 2010".

The annual results will also include a deferred tax liability increase of about $3 million, lowering net income by the same amount, it said.

The retailer will also cease being able to claim about $600,000 annual depreciation on company-owned buildings from next year.

Businesswire.co.nz

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