MELBOURNE: Country Road has announced a strong trading performance for the fist half year ending December 31 2008.
Releasing the unaudited results today (January 21) the company confirmed it expected profit before tax to increase by approximately 70 to 80 per cent from $8 million in the corresponding period last year to between $13.6 and $14.4 million.
Key factors underlying the period's strong performance were total sales up by 20 per cent, total retail sales up 18.2 per cent, with comparable like-for-like store sales up 12.8 per cent. Excluding currency impacts total retail sales were up 18.9 per cent. Total concession sales were up by 17.1 per cent, with comparable like-for-like store sales up 11.1 per cent.
Meanwhile reduced promotional activity and higher margins were achieved in both retail and concession outlets; wholesale sales of $3.0 million were attributable to the Country Road trial in South Africa, while expenses were well controlled during the period.
CEO Ian Moir described the results as "a pleasing performance in a tough market."
"Achieving double digit like-for-like store sales growth in both our retail stores and our concession outlets in Myer and David Jones demonstrates that our focus on great merchandise that represents exceptional value has been well received by our customers."
Moir also emphasised that the current economic outlook remained uncertain however.
"We are conscious of the widely held view that the domestic economy is yet to experience the full impact of the global economic downturn, and therefore we remain cautious about growth prospects in calendar 2009. However we believe our business is now more capable of negotiating a slowdown in domestic retail conditions than it previously has been."
Country Road's detailed audited financial statements are scheduled to be released on February 19.