NATIONAL: Specialty Fashion Group (SFG) expects 2010 to be a tougher trading year than 2009, despite recording a 90.3 per cent jump in first half net profit.
The fashion company, which operates 841 stores across six retail brands, reported net profit after tax for the half year to December 31 2009 was $26.6 million. This was up from $13.9 million in the first half of 2008/09.
SFG CEO Gary Perlstein attributed the jump in profit to strong sales growth, comparable store growth of 8.9 per cent and controlled costs.
“...Actions we have taken in the past year to improve our operations and cost control has resulted in our costs of doing business falling from 46.5 per cent to 42.7 per cent of revenue,” Perlstein said.
“Discounting has continued into the second half, and we expect that it will be a tougher trading environment in 2010 calendar year, however our brands are well positioned to face this challenge.”
Perlstein said changes made across the company's brands and operations were part of a strategy to prepare for future store expansions and refurbishments.
“Whilst great improvements have been made there is further opportunity for our brands to grow through investment in the store portfolio,” Perlstein said.
Specialty Fashion Group operates the Millers, Crossroads, Katies, Autograph, City Chic and Queenspark brands.