5 Mar 2012

Retailers with Australian exposure likely to feel the pinch

6:58 am on 5 March 2012

Retailers with exposure to the slowing Australian market are expected to be feeling a pinch a little more than counterparts servicing just the New Zealand market.

The Warehouse and Briscoes both release their latest financial results on Friday, while Pumpkin Patch and Kathmandu open their books later this month.

Forsyth Barr retail analyst Guy Hallwright says not all retailers will be faring equally.

He says a common theme amongst retailers which are not doing so well will be Australian exposure.

Mr Hallwright says companies like Pumpkin Patch and Kathmandu said they're having problems in Australia, there's a slow down there and margins are under pressure.

He says outside of that it's a mixed bag.

Mr Hallwright says those doing well are likely to be Michael Hill, Briscoes and Hallensteins.

He says Michael Hill's weak point was the Australian part of the business, but it still had a reasonable result.

But Mr Hallwright says retailers downgrading expectations include The Warehouse, Pumpkin Patch and Kathmandu.

He says retailers are likely to remain cautious about the outlook for the rest of the year, because of the volatile economic conditions and competitive environment.