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"Subject to no further deterioration in consumer sentiment and no further adverse changes in the macro economic environment, we reaffirm our 5 per cent to 10 per cent profit after tax guidance for second half 2011 and full-year 2012, noting however that if consumer shopping behaviour continues as per second quarter 2011, we expect our profit after tax will be at the lower end of our guidance," he warned.

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He said higher cost of living including rising electricity bills and petrol prices had contributed to the upmarket store reporting flat revenues which fell 0.2 per cent in the six months to the end of January to $1.08 billion.

While most of the store's upmarket customers tended to be more ``resilient and more affluent'' many in the middle market have been unnerved.

The company would pay an interim dividend of 13c per share - up 1c previously.

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