Home / Knowledge / News / Apparel/Garments / 1H11 profit drop at retail fashion group Noni B
1H11 profit drop at retail fashion group Noni B
24
Feb '11
Noni B Limited, the retail fashion group, announced an after-tax profit of $1.5 million for the six months to 26 December 2010. This compares with guidance of $1.5 - $1.9 million and with an after-tax profit of $3.6 million for the first half of FY2010. Sales were $61.4 million (pcp: $62.5 million), and comparable store sales were down 2.1 per cent.

Cash flow from operations was $7.1 million (pcp: $10.6 million). The company had cash of $8.7 million at 26 December 2010, compared with $9.3 million a year earlier, and no bank borrowings.

While the directors believe Noni B is well placed to increase sales and earnings when consumer confidence recovers, they have decided to adopt a cautious stance and pay an interim dividend of 1.0 cents fully franked, with a record date of 14 April 2011 and payable to shareholders on 28 April 2011.

'As already announced, low consumer confidence since the federal election has had a major impact on demand, and the cool, wet weather during early summer delayed purchases of our summer ranges,' said David Kindl, Joint Managing Director.

'While inventory remains under control and we have avoided the most aggressive discounting, we have had to meet the market, resulting in a slight decrease in our gross profit margin. '

'We are continuing to manage costs carefully, although marketing spend has been increased with the aim of expanding market share. We have also increased investment in staff training and all business and store managers have now completed a nationally-recognised retail qualification to enhance their retail skills. Both these initiatives are focused on long-term strengthening of our brand image, service delivery and customer base.'

'Five new stores were opened during the half year, including one each in the Sydney and Perth central business districts, and one non-performing store was closed. At 26 December 2010 our total number of stores was 217. While we continue to review growth opportunities, we will only open further stores where we can obtain leases that reflect the present retail conditions.'

Outlook
'Our new season's ranges have been well received,' said Mr Kindl. 'We are cautious, however, about demand during the coming months as consumer confidence remains volatile and may be affected by the prospect of higher energy costs and the flood levy. 'Trading in some stores was disrupted by the floods in Queensland and Victoria and by Cyclone Yasi; fortunately our staff are all safe and there was no serious damage to stock or equipment.

'We are continuing to manage tightly those aspects of our business that we can control, and are confident that our strong brand and reputation for quality fashion and value will enable Noni B to rebound when demand improves.'

Noni B Limited


Must ReadView All

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eric Scholler
Groz-Beckert

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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