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

Textiles | On 26th May 2017

Lenzing unleashes new eco-friendly fibre

There's a new eco-friendly fibre on the anvil—Austrian speciality...

Apparel/Garments | On 26th May 2017

Benetton seeks approval for FDI in single-brand retail

Global fashion brand Benetton Group, has sought Indian government's...

Apparel/Garments | On 26th May 2017

Walmart to conduct GST workshops for SME suppliers

With the objective of supporting its small and medium-sized (SME)...

Interviews View All

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Kevin Nelson
TissueGen

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

Kerem Durdag
Biovation II LLC

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Madhu Jain
Madhu Jain

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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:
May 2017

May 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