Home / Knowledge / News / Apparel/Garments / Retailer Noni B is steady in tough times
Retailer Noni B is steady in tough times
Sep '11
Noni B Limited, the fashion retailer, announced an after-tax profit of $0.7 million for FY2011 (FY2010: $3.9 million) before impairment of goodwill. This result is in line with market guidance in July. The statutory result, after impairment of goodwill relating to the company's initial public offer in 2000 of $0.4 million, was an after-tax profit of $0.2 million. Sales revenue was $117.3 million, in line with FY2010 ($117.4 million), although comparable store revenue was down 1.0 per cent. Average full price margin was higher, but discounting to meet the market resulted in a small decline in gross profit margin. Stock-turn increased and inventory at the end of the financial year was 10 per cent lower than a year earlier.

Cash flow remains strong and the company has no bank borrowings.

Due to the uncertain retail outlook, the directors have decided it would be prudent not to pay a final dividend. A fully franked interim dividend of 1 cent per share was paid in April 2011.

Review of operations
'In this very challenging retail environment, we have continued to refine all parts of the business so we benefit fully from an improvement in consumer confidence, whenever that may come. Following in-depth research into customer attitudes earlier this year, we are also progressing initiatives to ensure Noni B maintains its strong market position as consumers change their buying habits,' said David Kindl, joint managing director.

'During the past three years we have reviewed our business model in detail and have made changes where necessary. Management has been restructured, supplier terms have been improved, expenses have been reduced wherever possible, and store staffing rosters have been adjusted so they are aligned more closely with demand.

'Following these changes, we believe Noni B is well placed to increase our share of the fashion market and to benefit as consumer confidence returns.

'We have opened new stores where we can negotiate attractive leasing terms, especially sharing risk with the landlord. It is pleasing that eight new stores were opened in FY2011 compared with seven in FY2010. There has also been a strong focus on the individual performance of each store and seven underperforming stores were closed in both FY2011 and FY2010. As a result of the current economic situation, we have been able to negotiate a decrease in base rent for store leases renewed in FY2011.

'Recognising the importance of service in maintaining the loyalty of customers and differentiating Noni B, we have increased our investment in training and all store managers have now completed an externally recognised qualification in Retail Studies. During the year we successfully negotiated a new enterprise agreement with our staff, lasting until 2013.

Planning for the future
'We have recognised for some time that many of the changes in retail behaviour are permanent, with more people expecting retailers to offer online sales, and that we need to satisfy customers whether they want to shop instore or online. Next month, therefore, we will launch an online store.

Must ReadView All

Textiles | On 28th Mar 2017

India may impose duty on elastomeric filament yarn

The Government of India is likely to impose anti-dumping duty on...

Courtesy: Lee Cooper

Apparel/Garments | On 28th Mar 2017

CCI clears FLFL proposal to divest Lee Cooper

The Competition Commission (CCI) of India has approved the proposal...

Textiles | On 28th Mar 2017

Bardoli CEFC to benefit south Gujarat MSMEs

India’s first common engineering facility centre (CEFC) at Bardoli,...

Interviews View All

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search