China’s appliances retailer Gome has issued a profit warning for the year to December 31.

The loss is a result of drop in sales revenue, increase in rental expenses and loss-making e-commerce business, says the company.

It blames the poor performance on weak consumer sentiment as a result of China’s macro economic growth slowdown and the end of economic stimulus policies.

The warning comes on the heels of its plan to exit Hong Kong retail business from February 1. The retailer suffered a net loss of US$110 million in the first three quarters of 2012.

GB