Bapcor, the trans-Tasman auto parts retailer, says retail sales have improved from February to April.

However, the company says in an Australian Securities Exchange filing that its ongoing turnaround is stifled by challenging conditions.

“We are pleased with the positive momentum of the turnaround, which has been delivered through decisive actions we’ve taken to improve pricing, stock availability, and team engagement,” Chris Wilesmith, MD and CEO of Bapcor, said.

Wilesmith was appointed to his position at Bapcor in January, following the resignation of Angus McKay. He has been vocal about the opportunity to change the financial fortunes of the company with more than 1000 retail locations in Australia, New Zealand and Thailand; the largest company in its sector across the Asia Pacific region.

Retail sales across the company’s chains increased by 2.8 per cent during the February to April period.

But the rate of progress looks to be slowing, as Bapcor said that “trading conditions have materially deteriorated since late March”, citing the Middle East conflict and rising interest rates.

“As a result of the impact of this deterioration, Bapcor has reduced its earnings guidance,” the company added.

Wilesmith expects the combination of lower confidence among business and consumers, higher fuel and supply costs, and depreciation of Australia and New Zealand’s currencies to damage its outlook.

He said he will “continue driving initiatives” through May to June in spite of these challenges.