Gale Pacific (ASX:GAP) downgraded its earnings guidance for the fiscal year to reflect the impact of new trade policies in the US, sending its shares down to a 52-week low, according to a Monday filing with the Australian bourse.
The technical fabrics manufacturer expects fiscal year earnings before interest, taxes, depreciation, and amortization to range from AU$10 million to AU$12 million, down from a prior guidance of AU$18 million to AU$20 million issued in February.
The downgrade reflects the impact of reduced consumer demand in the US in the wake of the Trump administration's tariff policy. The company said its existing US inventory is not affected by the new duties.
It noted that performance in Australia, New Zealand, and developing markets is within expectations. It added that efforts to diversify its manufacturing outside of China are "progressing well."
Gale Pacific's shares fell 9% in recent trade, reaching an all-time low.
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