Big W and Virgin Australia make huge losses sparking fears of a recession

sonos sonos One (Gen 2) - Voice Controlled Smart Speaker with Amazon Alexa Built-in - Black read more

() Australia could fall into a recession for the first time in almost three decades with big companies this week posting abysmal earnings.

Discount retailer Big W made an $85million loss in the year to June, which followed a $110million loss in the financial year before that. 

Bosses blamed tough retail conditions and said they will continue to be tough.

Airline Virgin Australia also had a woeful year, bleeding $350million during the same period.

It blamed a weak Australian dollar - weeks after it sunk below 67 US cents for the first time in a decade, higher crude oil prices and weak demand from consumers.

Australia could fall into a recession for the first time in almost three decades with big companies this week posting abysmal earnings. Discount retailer Big W made an $85million loss in the year to June, which followed a $110million loss in the financial year before that

Australia could fall into a recession for the first time in almost three decades with big companies this week posting abysmal earnings. Discount retailer Big W made an $85million loss in the year to June, which followed a $110million loss in the financial year before that

On Thursday David Jones announced its full-year profit fell 42 per cent from $64million last year to $37million.

The upmarket department store chain said it would aggressively close and shrink stores as a result. 

Its traditional rival Myer reports its earnings next Thursday.

AMP Capital chief economist Shane Oliver said the disappointing corporate earnings season results, so far, was a sign of an economy in trouble.

'It's basically telling us that things are pretty soft,' he told Daily Mail Australia.

'A number of companies are like the weakness that we're seeing in the economy in terms of demand.'

Airline Virgin Australia also had a woeful year, making a $315million annual loss. It blamed a weak Australian dollar, weeks after it sunk below 67 US cents for the first time in a decade, and higher crude oil prices

Airline Virgin Australia also had a woeful year, making a $315million annual loss. It blamed a weak Australian dollar, weeks after it sunk below 67 US cents for the first time in a decade, and higher crude oil prices

Companies' bad results 

Virgin Australia: Lost $350million and said it would review all its flights

Big W: Lost $85million and said it would close stores

David Jones: Profits plunged 42 per cent and said it would shrink and close stores

Australia's construction sector is also in trouble, with residential construction activity falling by an annual pace of 9.6 per cent in June.

'There's more weakness to come in terms of housing construction,' Dr Oliver said.

'But we're also seeing weakness in non-residential construction so all of that is basically telling

read more from dailymail.....

Get the latest news delivered to your inbox

Follow us on social media networks

PREV Cruise passenger hits out at trip so bad the holidaymakers staged a mutiny
NEXT Fadi Fawaz 'is living in a shockingly dirty £49-a-night Travelodge'