Australian retailer Rivers loses 11 million dollars in six months

Rivers has suffered an estimated 11 million dollars loss in just six months, delivering a blow to the earnings of its new owner, according to Australian media. The apparel group, which also owns the Katies and Millers chains, has reported a 32 percent slide in half year earnings due to the poor performance of Rivers.

Specialty Fashions expects to have achieved earnings of between 21 million and 23 million dollars in the six months to December, 31, well below from 31.2 million dollars last year.

The textile group admits the turnaround plan for Rivers, which it bought for just 3.9 million dollars in late 2013, was taking longer than expected. At this regard, OptionsXpress market analyst Ben Le Brun said it appeared the company was looking to improve Rivers' offering by getting rid of old stock.

"It looks like they are doing what needs to be done in terms of moving the stock on and heavily discounting rivers to reinvigorate the brand," highlighted Le Brun.

Despite Specialty Fashion's earnings warning, chief executive Gary Perlstein remains upbeat about Rivers' long term prospects: "We remain confident that Rivers will make a meaningful contribution to the company's profitability in future years, alongside our other brands."