SYDNEY: Profit is up 68 per cent at Noni B, with a tight control of margins and costs responsible for the uplift.
The national womenswear retailer announced after-tax profit for the 2009/10 financial year was $3.9 million, up from $2.3 million in 2008/09. The result was above the company's forecast profit result of between $3.4 and $3.8 million.
Noni B joint managing director David Kindl said the increase in profit was attributable to factors other than total sales figures, which were up only 0.7 per cent year-on-year.
“The increased profitability reflects our focus on controlling margins and costs, while maintaining the loyalty of our customers through offering personal service and fashion that appeals to them,” Kindly said.
He added the business had avoided the aggressive discounting adopted by other retailers in the fashion sector.
The company's store numbers stood at 213 at the close of the financial year, in the wake of the closure of six locations and the opening of five others. More store openings are on the way.
“At least four new stores will be opened before Christmas 2010, including two CBD stores, one in Perth and the other in Sydney,” Kindl said.
“While we remain cautious about demand during the coming months, the company is in a stronger position than a year ago and is well placed to take advantage of an increase in consumer confidence.”
Noni B operates both the Noni B and Liz Jordan brands.