Smiths City Group provided preliminary earnings guidance for the second half and full year ended April 30, 2017. The company forecasts operating earnings for the year will range between $1.9 million and $2.1 million. Tougher trading conditions in the second half of the financial year have slowed the strong rise on the prior year's $1.3 million operating result, which excludes the one-off $1.8 million gain on the sale of the company's Colombo Street, Christchurch store. Lower restructuring costs and other abnormal costs have insulated the company from these factors. Nevertheless, operating earnings for the second half of the year are forecasted to be lower than the $1.5 million achieved in the first half of the financial year.