MELBOURNE: Country Road has reported a growth in sales for the third year in a row, yet a drop in profit for the financial year to June 30, 2010.
The national retailer said its total sales grew by 8.5 per cent to $372.1 million, compared to $343.1 million in the previous corresponding period. It reported that its full year revenue was up 9.7 per cent to $381 million.
Total sales from its retail stores were reported as $289.3 million, up 13.1 per cent on the previous year. The company’s total concession sales grew by 3.7 per cent to $82.3 million.
It announced its full year profit before tax was $17.5 million, down 20.2 per cent on the previous year. Its profit after tax was $12.3 million, a drop of 21.2 per cent.
Country Road chief executive officer John Cheston said the profit decline was due to discount led market conditions significantly impacting margins, combined with the start up costs of new brand Trenery.
“We continue to focus on the rollout strategy for Trenery and are continuing the expansion of Country Road,” he said. “Whilst we are optimistic about our growth plans for both brands, we are mindful of the persisting difficult retail environment. Initiatives have now been implemented aimed at sustainably driving business efficiency.”
TRENERY:Start up costs impacted profits.
