The Reject Shop shares plunge as it warns of drop in profit
Shares in The Reject Shop have plunged after the discount variety store chain warned its full-year profit will drop by almost a third.
The Reject Shop said the weak trading conditions flagged in its half-year results released in February had continued across its stores in all states and it now expected a full-year profit of about $12.5 million (£10.04 million), compared with $17.1 million (£13.73 million) in 2015-16. The company also warned that it might not be able to declare a final dividend in 2016-17.
Shares in The Reject Shop were down 33.2 per cent, or $2.63 (£2.11), to $5.29 (£4.25) in late trade.
The Reject Shop’s managing director, Ross Sudano, blamed a tough retail environment and “execution issues” with the group’s merchandising strategy for the weak sales performance.