RNB Falls After Saying It Won’t Reach Target: Stockholm Mover
RNB Retail and Brands AB fell the most in 13 months in Stockholm trading after the Swedish fashion retailer said it won’t reach the June 27 forecast of marginally improved earnings this fiscal year.
The shares declined as much as 13 percent, the biggest intraday drop since August 2011. Stockholm-based RNB was down 7.1 percent at 1.95 kronor as of 12:09 p.m., the third-largest decline on the Stockholm All-Share index.
Sales in the fiscal fourth quarter ended Aug. 31 were hurt by the reorganization of the Brothers & Sisters fashion division and as the Polarn & Pyret unit faced competition in children’s clothes in the sportswear market, the company said today in a statement. As a result, full-year operating profit was about 25 million kronor less than previously forecast, RNB said. The market will remain “challenging” this year and in early 2013, it said.
“As part of efforts to counter the tough climate and create long-term profitability, we will continue to focus on implementing efficiency-enhancing measures to realize operational synergies and to increase our cost-efficiency,” Chief Executive Officer Magnus Hakansson said in the statement.
The company had an operating loss of 509.5 million kronor ($75.7 million) in the fiscal year ended Aug. 31, 2011. It is scheduled to release an interim report for the fourth quarter on Oct. 24.
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