Home / Knowledge / News / Apparel/Garments / Retailer Noni B is steady in tough times
Retailer Noni B is steady in tough times
05
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 minister Smriti Irani lighting the lamp to inaugurate the 6th edition of the International Apparel and Textile Fair ‘VASTRA 2017’, in Jaipur. Courtesy: PIB

Textiles | On 22nd Sep 2017

Placement rate in textiles sector is 70%: Indian minister

The recent high growth of foreign direct investment (FDI) in the...

Apparel/Garments | On 22nd Sep 2017

New US FTC rule for RN used on textile product labels

The US Federal Trade Commission recently streamlined requirements...

Textiles | On 22nd Sep 2017

Messe Frankfurt acquires Source Africa, ATF textile shows

Messe Frankfurt, one of the world´s leading trade show organisers,...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Kevin Nelson
TissueGen

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Wendell Rodricks
Wendell Rodricks

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search