Shares in Kathmandu plunged by more than a quarter on Thursday after the company warned weaker consumer spending may hurt earnings.
The outdoor clothing and equipment retailer says sales have become increasingly difficult, particularly in Australia, in the Christmas period so far.
Kathmandu's chief executive Peter Halkett says if the trend continues, half year gross earnings are likely to be lower than a year ago, when it made $23.2 million.
He says customers have reduced their average spend and are being a lot more cautious about their total spend.
Mr Halkett says he's hopeful Kathmandu will get some of that back in January.
Kathmandu was down 56 cents on Thursday to $1.64.
