Noni B pursues rapid growth

Womenswear retailer Noni B has unveiled plans to expand its national chain after it reported a 41 per cent jump in net profits to $6.3 million for the year ending June 30, 2005.
Managing director David Kindl said the company planned to open eight new stores around Australia within the next six months.
"We remain focused on increasing our market share," said Kindl.
"The company's strong cash flow will enable us to finance our store refurbishment and store opening programs without having to resort to bank finance."
The company, which spent approximately $1.5 million on refurbishing 23 Noni B stores over the past year, will continue to roll out its new store fitout to its remaining 145 stores.
Kindl said the company's record end of year financial result flowed from giving customers what they wanted, increased productivity and "building brand awareness of the Noni B and Liz Jordan brands".
"We have continued to build market share in a challenging market, without participating in the massive discounting that has been a feature of the year," said Kindl.
He claimed strong sales growth in the first half had continued, with second half sales increasing by 10.9 per cent over the previous year.
"Margins grew strongly, due partly to tight control over discounting and effective inventory management, which reduced inventory at June 30 to 9.3 per cent below June 2004."
The company reported its profit growth had averaged an annual 38.3 per cent over the past four years.
The company opened seven Noni B stores in the last year and closed five underperforming stores were shut. One new Liz Jordan store opened.