NATIONAL: Womenswear retailer Noni B is expecting a sharp decline in net profit for the first half of fiscal 2009, despite reaping the benefits of the Government's economic stimulus package.
The company said activity over the holiday sales period had improved significantly as a result of the package, but that fewer women overall were spending money on clothes.
Conditions meant net profit was expected to be between $2 million and $2.5 million for the six months ended December 28, 2008. This figure, which included an $800,000 after-tax writedown of its La Voca fashion chain, represented over half the amount posted over the same period last year, which was $5.7 million.
In a statement to shareholders, Noni B admitted it had adopted a heavy discounting strategy to meet tougher trading conditions and maintain inventory control.
"As advised in October 2008, trading conditions have been difficult, with weaker consumer spending on women's fashion. The company had discounted to meet the market with the result that stock remains under control."
Twelve new stores opened over the half year with more expected over the second half, should leasing arrangements be "satisfactory."