MELBOURNE: Premier Investments has delivered a harsh assessment of its Portmans overhaul, in the wake of an estimated $18.5 million loss for the brand in the 2009/10 financial year.
In 2009, the group announced it would undertake changes to significantly improve the young fashion label. It set out to reposition the brand, to appoint a new creative team, new leadership and new communication with customers.
It has reported that the transformation process has gone too far to recapture its primary customer, or to attract new, relevant customers. It reported that too much change at one time - such as a new logo, new store design and product styling - confused the staff and customers.
It said its product styling had become too directional and sophisticated, while price increases reduced the accessibility of the brand.
The company also reported that in-store theatre was pared back too far and a substantial reduction in digital and mass communication caused many changes to go unnoticed.
It has reported it will continue to implement improvements with a clearer strategy. A key change will be the closure of 15 to 20 marginally performing stores.
Portmans is part of Premier Investments’ Just Group business, along with Just Jeans, Peter Alexander, JayJays, Jacqui E and Dotti.
Just Group’s 2009/10 financial year total sales were reported as approximately $870 million. This presents an increase of approximately three per cent on the previous corresponding period. Just Group’s EBITA is expected to be in the range of $82 million to $86 million. Its NPAT is expected to be in the range of $78 million to $81 million.
The group’s preliminary final results will be provided on September 21, 2010.
Overall the group expects to be positioned for a significantly improved performance in the financial year ahead. It expects Just Group’s EBITA for the 2010/11 financial year to be in the range of $100 to $110 million.
PORTMANS: Set for an overhaul.
