Funtastic lowers FY guidance

Challenging retail environment to hit company's earnings, conditions to persist.

Funtastic Ltd has downwardly revised its full-year guidance amid a challenging retail environment and expects tough conditions to continue.

In a statement to the Australian Securities Exchange, the company said it expects earnings before interest, tax, depreciation and amortisation of between $20 million to $21 million in fiscal 2013. 

This is lower than previous guidance of $23 million to $25 million for the year.

The company expects tough Australian conditions but solid growth from international operations and wholly owned brands in the 2014 financial year.

Managing director Stewart Downs said additional cash raised had strengthened the company's balance sheet.

"We are disappointed to be flagging earnings which are below our previous guidance," Mr Downs said.

"This reflects an Australian retail environment which has been more challenging than we had anticipated."