NATIONAL: The Athlete's Foot has given new meaning to the phrase 'when times get tough, the tough get going'.
The sportswear chain's parent company RCG Corporation has bucked tough trading conditions to post a 60 per cent rise in half year profits.
RCG reported $3.73 million net profit for the six months ended December 28, up 60 per cent jump on the previous corresponding period.
The group's performance continued on into January with like-for-like sales up 20 per cent year on year. In a statement to shareholders, the company says it is optimistic growth would continue into calendar 2009.
"The group's profitability for the first half of the financial year has met all of management's original forecasts and, given the rapidly deteriorating economic climate, this is an outstanding result.
"The Athlete's Foot has continued to achieve solid like-for-like sales growth in the current climate and is outperforming both its sector and specialty retail in general."
The company says part of its performance could be attributed to a new store format which debuted at Sydney's Macquarie Centre in late October. The store features a "substantially" extended product range in a much larger store environment.
Sales at the store were up 38 per cent for the three months ended January, 2009. The Athlete's Foot expects to convert another three stores to the new format before the end of the financial year and is in the process of finalising a detailed rollout program for fiscal 2010.
RCG acknowledged
the store had already exceeded expectations in an address to shareholders in
November.
"The performance of the store in the short time that it has been open strongly supports our market research on the expanded range in a larger format store," the company said at the time. "Based on this, it is our intention to rollout these new format stores in a measured but concerted way over the coming months and years.
"It is our expectation that many existing franchisees will want to switch to the new format and we will be working closely with landlords and franchisees to identify and secure appropriate sites."
The Athlete's Foot currently operates 136 stores.