Premier Retail has announced growth in its apparel division for the second half of fiscal 2018.
Premier Retail CEO Mark McInness confirmed that transactional websites for Just Jeans, Portmans, Jacqui E and Just Jeans will launch in New Zealand in the second half of fiscal 2019.
“Our 2011 strategy identified online as an essential and complementary channel for our brands. We have grown this channel from almost zero in FY11 to $112.5 million this year.
“In our apparel brands where we foresaw increased competition, we clarified our market position and invested in product merchants. In Q4-18 these brands delivered sales growth of 8.1%."
The apparel brands delivered sales growth of 5.5% for 2H18 with strong momentum into Q4-18 (sales up 8.1% in the fourth quarter).
Stand out growth performances for the second half included Portmans sales up 17.4% (Q4-18 up 17.6%), Jacqui E sales up 9.4% (Q4-18 up 11.8%) and Just Jeans sales up 3.2% (Q4-18 up 7.2%).
Premier Retail said the Australian and New Zealand apparel industries remain difficult, increasingly competitive and structurally challenged.
It credited sales growth through ongoing investment in product, strong management and merchandising teams and eCommerce traction.
The group confirmed that its online channel reached its original 2020 target of $100 million in annual online sales in FY18 – more than two years ahead of the original plan.
Premier Retail grew online sales for FY18 by 65.3% to $112.5 million.
In FY18, the online business delivered 11.0% of the sales in countries and brands with a transactional website.
McInnes said the online business is highly profitable with an EBIT margin significantly higher than the store portfolio.
During 2H18, Premier Retail made a significant investment in upgrading the online platforms for all brands across mobile, tablet and desktop.
Premier Retail will continue to invest heavily in this fast-paced channel of growth.
“We have also delivered cost efficiencies across all areas of the business. In particular, we sought, and we continue to seek rents in line with centre performance. We have closed and will continue to close unprofitable stores.”