NATIONAL: Country Road Limited has announced it expects a drop in profit levels in 2009/10, despite recording a sales increase in the half year to December 31.
The national retailer announced unaudited total sales for the first half of 2009/10 were $196.8 million, up 12.6 per cent on the same period last year. Like for like sales - that is, excluding new stores - were up 4.5 per cent.
Country Road acting CEO Glenn Gilzean said a tough and competitive environment in the second half of 2009 had placed pressure on margins.
“That said, we are pleased to see good growth in all channels of our business,” Gilzean said.
The company announced profit levels for the 2009/10 financial year are likely to be constrained by ongoing margin pressures, as well as significant set-up costs associated with the launch of the Trenery brand in September 2009.
“The outlook for the six months remains challenging. Whilst we expect sales to continue to grow, our expectations are of single digit growth,” Gilzean said.
Country Road Limited's profit after tax for the 2008/09 financial year was $15.6 million, an increase of 60.4 per cent on the prior year.