SYDNEY: Undercoverwear has reported a challenging first half to the current financial year, with revenue of $13,401,225 down 10.6 per cent on the previous year.
In the six months to December 31, 2009 the company reported profit from ordinary activities after tax attributable to members was $892,550, down 37.6 per cent on the previous corresponding period.
The party plan lingerie business reported that trading for the period was challenging due to the vast choice available to consumers of competitive product at heavily discounted prices. It said this was driving their purchasing behaviour.
Undercoverwear said the board had reviewed all aspects of the business including consultant incentives, product development and design. This included a review of the product offering and timing of collections. A new outerwear brand was launched to provide clearer segmentation of the group's product offerings.
The company expected to see the benefits of this in the second half of trading. It reported that the focus remains to improve sales volumes, gross margin and the bottom line.