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

Pic: Shutterstock

Apparel/Garments | On 23rd Jun 2021

Bangladesh looking to export resortwear & leisurewear to Maldives

The Bangladesh Garment Manufacturers and Exporters Association...

Pic: Mango

E-commerce | On 23rd Jun 2021

Spanish brand Mango invests €35 million to expand logistics centre

Spanish apparel brand Mango has invested €35 million to expand its...

Pic: Shutterstock

Textiles | On 22nd Jun 2021

Investment flows to developing Asia defy COVID-19, grow by 4%: UNCTAD

Foreign direct investment (FDI) flows to developing countries in Asia ...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Uniform designing is a numbers game

Textile Industry, Head honchos

Textile Industry
Head honchos

Main challenges are breakdown of supply chain and shrinkage of manpower

Textile Industry, Head honchos

Textile Industry
Head honchos

Great step towards realising end goal of 'AtmaNirbhar Bharat'

Rajat Kapoor,

Rajat Kapoor

Seraphine is a British maternity brand providing affordable luxury fashion ...

Amanda Cioletti,

Amanda Cioletti

The entertainment/character segment lead as the largest sector for the...

Ritu Oberoi,

Ritu Oberoi

Established in 2018, Forsarees is a socially driven business enterprise,...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

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

Leave your Comments


June 2021

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


Advanced Search