Gross margin increased by 53bps at Just Group

19 Sep '11

5 min read

New Zealand
- Total sales up 0.5% (in NZD)
- LFL sales down 2.4% (in NZD)
- 9 stores closed since the February earthquake; 5 stores
permanently closed; 4 stores reopening in mid September
- Sales lost due to earthquake significant
- Insurance proceeds of NZ$1.5m recognised in FY11
P&L related to asset and profit losses

Stores
- Total sales down 1.2%
- Solid result in a tough market
- Brand is well positioned under focused leadership to perform well in a competitive market
- 251 stores at end of year

Jacqui E
- Total sales down 2.7%
- Challenging year with sales supported by promotions at the expense of margin
- 108 stores at end of year

Jay Jays
- Total sales down 8.5%
- New leadership team appointed and focused on brand turnaround
- 15 stores closed during the year
- 238 stores at end of year

Dotti
- Total sales up 5.2%
- LFL Sales Negative, 9 stores opened during the year, including 3 stores previously trading as Portmans and 1 previously trading as Peter Alexander
- 116 stores at end of year

Portmans
- Total sales up 3.6%
- Portmans to be profitable in FY12
- Portmans stores continued to outperform competitors and take
share in key locations despite the weak consumer environment
- 19 stores closed during the year
- 111 stores at end of year

Peter Alexander
- Total sales up 21.8%
- Excellent result in a weak discretionary market proves the strength of the brand and the importance of having the right offer
- 7 stores opened during the year
- 15-30 stores to open over the next 3 years
- 39 stores at end of year

Smiggle
- Aus/NZ total sales up 20.3%
- 13 stores opened during the year
- 100 stores at end of year in Australia & New Zealand
- Opportunity to open up to 50 more stores in Australia and New
Zealand over the next 3 years
- Very successful opening in Singapore, with 2 stores opened in FY11 and another store opened in September 2011
- Singapore is a very exciting growth opportunity
- Brand and operating model has translated well in the new market
- Singapore business already contributing to group profitability

Premier Retail (The Just Group) trading outlook
The Macro economic environment and consumer confidence has continued to deteriorate in August

Management is focussed on
–- Reinvigoration of our products and brands
–- Improving gross margin through better sourcing
–- Accelerating the cost reduction program

- Inventory clean in all brands
- New Peter Alexander and Smiggle stores are on track to open pre Christmas
- Premier Retail fully hedged for FY12
- Based on the successful implementation of the strategic initiatives to date, and subject to the macro environment stabilising and Christmas trading, Premier reaffirms recent market guidance for FY12 Premier Retail EBIT to be in the range of $80 million—$95 million

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