Retail discounts may have backfired
21/01/2009
Canada-based leather and suede clothing and accessories company Danier Leather has said financial market concerns, expectations of higher unemployment rates and increased fear of recession have contributed to weakened consumer confidence, resulting in a second-quarter drop in its performance.
The company has posted sales of around US$55 million for the second quarter of its fiscal year, 3% down on the figure for the same period a year ago. Net profits were up on 12 months ago at just over $5 million.
Danier said "a highly promotional retail environment" had done little to boost sales as consumers decided to delay purchases and wait for additional discounts.
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