Home / Knowledge / News / Apparel/Garments / Aussie retailer remains cautious about consumer sentiment
Aussie retailer remains cautious about consumer sentiment
28
Aug '12
Specialty Fashion Group Limited confirms revenue for the full year ended 30 June 2012 of $572.5 million, delivering Earnings Before Interest Taxation Depreciation and Amortisation (EBITDA) of $21.7 million, in line with the results guidance provided on 13 July 2012.
 
The Company reported a net loss for the year of $2.8 million, which includes an increase in depreciation of $2.8 million attributable to impairment of assets in relation to stores that are part of the Company’s store rationalization program.
 
While challenging economic and retail market conditions continued throughout the year to June 2012, the underlying trend in Specialty Fashion Group’s sales and gross margins improved in the second half of that year, largely as a result of improvements made in its supply chain.
 
The Company remains focused on enhancing its supply chain and through doing so improving its gross profit margin from the current level (58.1% for the year). This is being achieved through improvements in purchase commitments driven from reductions in the underlying cost drivers of fabric and product manufacture, more favourable hedged USD exchange rates and further internal improvements in supply chain management.
 
In addition, the Company has continued to aggressively pursue online sales growth and the delivery of omnichannel shopping experiences through investment in a new e-commerce platform, expansion of its online logistics operation as well as leveraging its customer relationship management capabilities. 
 
In FY2012 the Company’s online sales grew to $15 million, representing 2.6% of total revenue. Email membership grew to 2.1 million members.
 
Despite the weaker trading performance, operating cash flows were higher than the prior year at $36.5 million, due to the efficient management of working capital. During the year the Company invested $16 million in capital expenditure, primarily in stores and IT, and ended the year with a net cash position of $4.1 million. The Group has available debt facilities of $85 million, of which $6.5 million was used at the end of the year.
 
The Company has not declared a final dividend.
 
Outlook
The Company expects an improved trading performance in FY2013, although it remains cautious as to the extent to which macroeconomic factors, both in Australia and abroad, may adversely influence consumers’ propensity to spend on discretionary items. The targeted strategic initiatives in relation to eCommerce, customer relationship management and the supply chain are progressing well, and the Group will continue to pursue new opportunities for growth including Stylefix.com, the new online business launched on 2 July 2012.

Must ReadView All

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Information Technology | On 25th Apr 2017

Self-repairing fabrics to be the future of fashion

It is the era of smart. Intelligent materials like self-repairing...

Textiles | On 25th Apr 2017

Indonesia revitalising textile sector

With exports of textile and textile products rising in Indonesia, the ...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Kevin Nelson
TissueGen

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Wendell Rodricks
Wendell Rodricks

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

Karan Arora
Karan Arora

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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