MELBOURNE: Country Road has made good on its promise of a strong results season.
The menswear, womenswear, childrenswear and homewares retailer today announced profit before tax of $14.6 million for the half year ending December 31 2008, an increase of 82.4 per cent from $8.0 million last year.
Total sales were up 20 per cent and total retail sales up 18.2 per cent, with comparable like for like store sales up 12.8 per cent. Total concession sales were up 17.1 per cent with comparable like for like store sales up 11.1 per cent. Meanwhile wholesale sales of $3 million dollars were attributable to the Country Road trial in South Africa.
The company reduced promotional activity during the half and reined in expenses, boosting margins in both retail and concession outlets. It also posted a net increase of cash during the half, from $9.7 million to $31.6 million.
Country Road CEO attributed the company's success – in defiance of the current slow down – to its continued focus on supplying fashionability and "exceptional value".
Moir confirmed he expected trading conditions to remain challenging for the next 12 months, but said the company was well positioned to trade through the downturn and was energised by the prospect of launching new 40-plus men's and womenswear label Trenery later in the year.