Home / Knowledge / News / Apparel/Garments / Country Road cheers despite tough Aussie retail conditions
Country Road cheers despite tough Aussie retail conditions
07
Nov '12
In 2012 Australian retail conditions continued to be difficult. Although the fundamentals of the Australian economy improved with growing GDP, declining interest rates and low levels of unemployment, consumer sentiment remained soft with consumers continuing to cut back on their discretionary spending. 

Despite the tough conditions, we continued our strategy of reduced levels of discounting across Country Road and Trenery stores and our concession stores in Myer and David Jones. 

Address of Country Road’s Chairman:
We opened five new stores in South Africa, one in Australia and one in New Zealand and we invested in our online and digital business. We also closed a number of unprofitable retail and concession stores. These strategies have improved our margins and established a solid foundation for the business moving forward. 
 
Total sales grew to $419 million - up by 1.8% on the prior year as a result of our strong trading performance in South Africa. Total Australasian sales were down 2.6% on last year with comparable sales down 6.6%. Profit before tax was $20.5m, after costs of $1.5m were incurred as a result of the acquisition of the Witchery Group. Excluding these costs, profit before tax was down 3%. 
 
Throughout the year we improved our business efficiency. We continued to focus on reducing expenses and improving inventory control and this ensured that operating margin and profit were maintained broadly in line with the prior year. As a direct result of this, our cash position improved materially. 
 
Our online store performed extremely well during the year and following a relaunch of the site on 1 st August the customer experience is even better than before. We believe that online sales will continue to perform strongly in FY13. 
 
On 2 October 2012, Country Road completed the acquisition of the Witchery Group from Gresham Private Equity for A$172 million. The acquisition creates one of Australia's largest speciality fashion retailers with complementary brands and a strong position in the mid to upper tier specialist retail sector. Australia's apparel market is currently at a cyclical low, providing the opportunity for Country Road to consolidate its position ahead of the expected economic recovery. 
 
The transaction was funded through a combination of acquisition debt of $92 million and the proceeds of the $92 million 1 for 2 renounceable rights issue. I would like to acknowledge and thank shareholders for their strong support through participation in the rights issue Approximately 99% of entitlements were taken up by shareholders and we received oversubscriptions for the additional new shares.


Must ReadView All

Vietnam's south turns strong South Korean investment hub

Textiles | On 25th Mar 2019

Vietnam's south turns strong South Korean investment hub

South Vietnam has turned a major investment destination for South...

Pic: Lanxess

Textiles | On 25th Mar 2019

Lanxess increasing capacity for benzyl alcohol

Specialty chemicals company Lanxess is increasing production capacity ...

Pic: GII Apparel

Apparel/Garments | On 25th Mar 2019

G-III Apparel net sales up 9.6% to $3.08 bn in FY 2019

Net sales for G-III Apparel Group, a company that sources and markets ...

Interviews View All

Sonia Agarwal, Whitenife

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Cyril Pereira, Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Pinkesh Jain, Everflow Petrofils Ltd

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Shyam Gupta & Ravi Gupta,

Shyam Gupta & Ravi Gupta

Based out of South Delhi, Gargee Designer's provides bespoke formal and...

Harsh Shah,

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Pratik Agarwal,

Pratik Agarwal

Breya is a brand of Indo-Western clothes for women owned by ABP Apparels...

Ashok Desai, Bombay Textile Research Association

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Melissa Tate, University of New South Wales

Melissa Tate
University of New South Wales

<div><div><div><div><b>Melissa Tate</b>, a well-known scientist currently...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions &amp; Vertriebs Gmbh, founded in 1978 and headquartered ...

Joe Ikareth, Joe Ikareth

Joe Ikareth
Joe Ikareth

<b>Joe Ikareth</b> has a rock-solid fashion and textiles background, which ...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

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


March 2019

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

news category


Related Categories:

Advanced Search