Fashion retailer OrotonGroup net sales revenue up 11% to $84mn

24 Mar '06

3 min read

“Given the success in delivering benefits in our other brands, we remain confident that we will do the same with Marcs. It will just take a little longer than expected,” Mr Lane said. “Widespread changes have now been made in Marcs and new season products are already in the pipeline. On the back of this we are planning a comprehensive relaunch of the Marcs brand in our new financial year. The early signs from wholesale support for this new season product are encouraging.”

Given the lead times and costs associated with implementing these changes, Marcs is not expected to deliver an improved financial performance until FY07. In 2H06, Marcs is likely to make a similar negative contribution to that of 1H06.

Dividend
OrotonGroup will pay a fully franked interim dividend of 5.0 cents per share on 21 April 2006 to shareholders registered on 5 April 2006.

Outlook
Retail conditions remain competitive. OrotonGroup expects net profit after tax for the second half of the 2006 financial year to be below that of the first half, reflecting the impact of Marcs, current market conditions and the seasonality of OrotonGroup's business where sales are typically weighted towards the first half of the financial year. As indicated at the AGM on 30 November 2005, OrotonGroup remains on track to record an improved FY06 net profit after tax, compared to FY05 on a pre-significant items basis.

OrotonGroup's brands include Oroton, Morrissey and Marcs, and the Australian licences for US label Polo Ralph Lauren and Canadian footwear brand Aldo.

OrotonGroup

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