NATIONAL: Specialty Fashion Group has upwardly revised its profit expectations for the first half of 2009/10, despite “tough” Christmas trading conditions.
The listed apparel company has announced it expects profit before tax for the half year ended December 31 2009 to be within the range of $37 million to $39 million. Specialty Fashion Group previously announced it expected profits before tax for the period to be within the range of $24 million to $30 million.
The upward revision comes on the back of an 11.5 per cent increase in sales for the first half of 2009/10 as compared to the previous corresponding period. Preliminary sales for the first half of 2009/10 were $318 million.
Specialty Fashion Group CEO Gary Perlstein said while the company was “very pleased” with the first half performance of its brands, conditions experienced during the Christmas trading period meant that it was “concerned” about possible economic conditions in 2010.
“Christmas 2009 trading was more challenging than in 2008, with the discounting in the market being more aggressive than we have seen for many years. This may be the first indication that there will be more difficult trading conditions in the second half of FY10, when consumers will not be receiving government handouts and interest rates are on the rise,” Perlstein said.
Specialty Fashion Group operates the Millers, Crossroads, Katies, Autograph, City Chic and Queenspark brands. The company is due to announce further details on its first half performance on February 23.