Rona Inc. (TSE:RON), a Canadian home improvement retailer and distributor, slumped to the lowest in more than four months after posting lower revenue and profit in the fourth quarter, hurt by extreme winter weather and a decline in home-building.
Rona tumbled 6.1 percent to C$11.62 at 1:48 p.m. in Toronto after reaching C$11.36, the lowest intraday price since Sept. 24.
Adjusted net income slid 28 percent to C$4.6 million, or 4 Canadian cents a share, in the 13 weeks ended Dec. 29, from C$6.4 million, or 5 Canadian cents a share, in the year-earlier period, the Boucherville, Quebec-based company said in a statement today. There were 14 weeks in the last quarter of 2012.
Total revenue skidded 3.5 percent to C$941.1 billion from C$1.07 billion a year earlier.
Analysts were looking for per-share earnings of 10 cents and revenue of $1.08 billion according to Thomson Reuters.
Same-store sales, a critical measure of retail health which strips out the effects of store openings and closings, fell 3.5 percent due to the ice storm in Ontario and Quebec in December and a decline in housing starts.
Rona has Canada's largest network of home renovation, hardware and gardening stores of various sizes.
"Fiscal 2013 was a year of profound organizational change at Rona, against the backdrop of a difficult market context for our industry," Chief Executive Officer Robert Sawyer in the statement.
Rona said it will focus this year on repositioning some store banners and stabilizing profit margins after lowering price and selling excess inventory.
"Most importantly, we will concentrate on meeting the needs of our target customers so that we can increase our market share in an industry that is experiencing a cyclical slowdown," Sawyer said.