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

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Mohammad Hassan
Biax Fiberfilm

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Lynda Kelly
Suominen Corporation

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 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