Australian Retailers Near Yearly Lows; Kathmandu Drops 23%

Marcus Jacob
22 Dec, 2011
New York City

Australian stocks edged lower after a weakness in resource stocks and retailers. Kathmandu, the outdoor apparel retailer dropped 23% after it said same store sales in the last five weeks are below a year ago period.

[R]8:00 PM Sydney – Australian stocks edged lower after a weakness in resource stocks and retailers. Kathmandu, the outdoor apparel retailer dropped 23% after it said same store sales in the last five weeks are below a year ago period.[/R]

Australian stocks declined for the third day in the last four days as retailers fell again after Kathmandu issued earnings and sales warning.

One of the last retailers to hold out against the weak consumer spending said fewer customers are visiting stores and spending is down compared to a year ago. Kathmandu plunged 23% and earlier in the week Billabong dropped nearly 40%.

The ASX 200 index closed down 1.2% or 48.7 to 4,090.8 and All Ordinaries index declined 48 or 1.1% to 4,142.2.

The Australian dollar edged higher 0.2% and closed at US$1.016.

Stock Movers

BHP Billiton Ltd fell 48 cents to $34.65 and Rio Tinto Ltd decreased $1.08 to $60.65.

Fortescue Metals Group decreased 4 cents to $4.46, Lynas Corporation Limited closed down 4 cent to $1.13 and Iluka Resources declined $0.32 to $15.46.

Oil Search Limited traded up 4 cents to $6.31, Santos Limited declined 12 cents to $12.38 and Woodside Petroleum increased $0.40 cents to $31.10.

Commonwealth Bank of Australia decreased 2 cents to $49.32 and National Australia Bank fell 16 cents to $23.40. ANZ edged down 30 cents to $20.55. Westpac inched lower 13 cents to $20.35.

Cochlear fell $0.88 to $62.12 as investors sold stocks in general market weakness.

David Jones Limited increased 9 cents to $2.45 and Wesfarmers Limited increased 65 cent to $30.35 Harvey Norman Holdings closed down 4.5 cents to $1.83.

Woolworths Limited closed up 31 cents to $25.92 and JB Hi-Fi Limited increased $0.12 to $12.12.

Billabong International Ltd eased back 17 cents to $1.78 as investors sold retailers after Kathmandu issued earnings and sales warning.

Kathmandu plunged 23% or 42 cents to $1.27. The retailer of outdoor apparel and gears said its sales in the second ending in December are weaker than expected and same store sales in the last five weeks are below the year ago period.

The company said fewer customers are walking in the store and are purchasing less. The company said it was too early to estimate full year sales and earnings.

Qantas Airways Ltd closed down 3 cents to $1.47, Virgin Australia closed unchanged at 35.5 cents and Flight Centre declined $1.07 to $17.60.

QBE Insurance Group Limited decreased 14 cents to $13.06 and QR National declined 8 cents to $3.43 and the company is in a deal with Rio Tinto to transport coal from mines to a port in Queensland.