NATIONAL: Luxury accessories company Orotongroup is claiming a bright future following the release of its half year results.
Announcing results to January 24 this morning, the group confirmed a net profit of $12.5 million for the period, an increase of 24 per cent on the previous corresponding half.
Like for like store performance was 12 per cent up for the group as a whole, 20 per cent up for Oroton and five per cent up for the Polo Ralph Lauren brand.
Meanwhile the company's cost reduction program announced in FY07 had continued to drive total expenses down to 47 per cent of sales compared to 50.3 per cent of sales in HY08.
The group opened 10 new stores including seven retail sites, one concession store and two factory outlets, and closed two stores due to landlord redevelopments, taking the store total from 59 at the end of FY09 to 67 at HY09. A further two new stores were planned for late H209, as well as an ongoing refurbishment program.
Orotongroup CEO Sally Macdonald welcomed the results.
"We are pleased with our 20 per cent increase in profit for the first half of FY09, in what is considered to be the weakest economic climate for many years. Our like for like results demonstrate the strength of our assets as well as our ability to navigate through volatile trading conditions."
"Coupled with the structural changes that we have implemented over the past 24 months, and our focused strategy of being leaders within our competitive segments, we have healthy foundation for the future."