Embattled retailer Rivers is expected to return to profitability in FY2017 after halving its losses from last year.
The retailer's parent company Speciality Fashion Group (SFG) announced that underlying EBITDA loss for the River's brand excludes a one off adjustment of $1.9 million following the closure of its warehouse facility in Ballarat earlier this year.
Despite losses, Rivers has increased online sales by 48% year-on-year.
SFG CEO Gary Perlstein is confident Rivers will strengthen itself as a competitive player in the Australian retail landscape.
"Our confidence in the Rivers turnaround continues.
"Rivers has halved its loss on last year, and is expected to start trading profitably during FY2017 year.
"The Rivers turnaround is on track, and the worst is well behind us.
"The Rivers leadership team is delivering strong improvement across the business.
"Improved product is resonating with consumers across all categories.
"Cost-effective online marketing is also making a real difference in building customer loyalty, with a big uplift in online sales and repeat purchases."
Across its brand portfolio, SFG has recorded $826.2 million in sales revenue at 4% higher than its previous corresponding period.