Home > Industry > Godfreys Profit Down 62%, CEO Pledges Turnaround In Next 3 Years

Godfreys Profit Down 62%, CEO Pledges Turnaround In Next 3 Years

Godfreys has posted a $58.6 million half-year loss, plus a notable 62% drop in underlying profit – prompting recently appointed CEO, Jason Gowie, to announce a new turnaround strategy focused on efficiency gains.

The retailer’s latest loss has burgeoned from its former HY net loss of $21.7 million.

Revenue slipped 8.9% to $84.2 million.

Chief Executive, Jason Gowie, states its clear “there is a need for change”, asserting a “re-balancing exercise” is needed away from bricks-and-mortar stores.

Announced alongside the retailer’s HY earnings results, Godfreys’ Chief Executive is pledging to turn around the company’s declining results over the next three years.

“We are confirming the continuation of a negative like-for-like sales trend which has been consistently around minus six to seven per cent for the last three halves”.

“We need to increase our focus on e-commerce and we also need to expand our wholesale distribution channels”, he adds.

Mr Gowie remarks that the vacuum retailer is losing sales to rivals such as JB Hi-Fi and Harvey Norman.

The results come as the retailer incurred a – previously announced –  $75.2 million impairment charge, coupled with other business restructuring costs.

For the six months to December 31st, Godfreys posted an underlying profit of $897,000.

The retailer anticipates a full year earnings of between $5 million to $6 million, following further declines in like-for-like sales.

Following the release of its earnings results, Godfreys shares slumped to their lowest level, since listing on the ASX – around 30 cents.

No dividend was declared.

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