SYDNEY: OrotonGroup has announced a record net profit after tax for the six months to January 23, 2010, but is expecting a more challenging second half to the financial year.
The figure was $15.4 million for the period, up 24 per cent compared to the same time the previous year.
The luxury bag and accessory retailer also reported group like for like sales performance was up 6.3 per cent. EBIT grew 20 per cent to $21.6 million.
A statement said the group’s focus on cost management had continued to drive total expenses down to 41.8 per cent of revenue, compared to 46.1 per cent in the previous corresponding period.
OrotonGroup has a total of 73 stores across the country, including the Oroton and Polo Ralph Lauren labels. It opened three new stores in the period and relocated two of its Polo Ralph Lauren stores. It has two new stores planned for the next six months, with others closing temporarily for refurbishment.
The results follow the recent announcement that the group has signed a new exclusive licence agreement to run Polo Ralph Lauren operations in Australia and New Zealand for three more years.
The agreement has a renewal option for an additional two years subject to satisfaction of confidential business performance hurdles. It commences on July 1, 2010, the day after the current agreement between the two companies expires.
The deal was struck with the The Polo/Lauren Company, L.P. (PRL) which is a subsidiary of Polo Ralph Lauren Corporation.
Orotongroup has managed the PRL label domestically for over 20 years.