Why is everyone surprised by the result? What were people expecting? 10% margins is all they are ever going to achieve, combined with their high overheads it's not going to produce any profits anytime soon. Realisation has set in. This is a $0 company and that is being generous.
Problems wrong with au8
1. Can't run retail store with only 10% margins with relatively low turnover.
2. Opening retail store when they are also trying to sell direct to China
3. High overheads associated with ASX listing and compliance. Ever dollar counts in a low margin environment.
4. Thier George St store is more akin to to a Louis Vuitton store than a daigou wholesale site.
These are mom and pop stores not a ASX listed company
