Q2FY18 online revenue at PAS increases 17.2%

Meanwhile, retail sales reduced by 1.3 per cent to $139.1 million due to poor performance by the Department Store Concession. The wholesale sales also lowered by 2.8 per cent to $117.3 million. This was driven by delayed designworks orders by key Department store customers and the proactive discontinuation of $5.1 million of low margin sales.

During the reported period, the company invested in growing the infrastructure of its swimwear division to support both the international growth of both its JETS brand as well as Bondi Bather, which has now been fully integrated into the swimwear division. "We continued to further invest in our broader digital capability, investing in infrastructure including both people and technology to grow our own websites as well as 3^rd party platforms and marketplaces," PAS said in a press release.

During the quarter, the company made targeted investments in new bricks and mortar sites and refurbishments, opening 14 new sites (9 of which were David Jones concessions). It also refurbished a total of 19 sites.

"Throughout FY2018, the pressures on discretionary spending continued and competition for the consumer wallet intensified resulting in retailers across the sector continuing to discount more heavily for lengthier periods in an effort to remain competitive and manage stock positions. Whilst traditional retail trading conditions remained challenging, this last fiscal year was a period of consolidation in which we invested in key areas of the business to support sustainable earnings growth," chief executive officer, Eric Morris said.

Whilst the macroeconomic and competitive pressures that all retailers face will continue in FY19, the company's strategic focus will remain active that deals with the factors that are within control whilst focusing on new growth opportunities.

"Continue to rationalise our store portfolio as consumers shift their spending from bricks and mortar stores to online. We will continue to focus on store profitability and close stores where we cannot achieve appropriate levels of profitability, especially in cases where we believe rental expectations are unrealistic in the current market. We are currently planning on closing 20 stores during the year," Morris added. (RR)

Fibre2Fashion News Desk – India