NATIONAL: Country Road's re-aligned value proposition is being touted as the reason behind a sales performance exceeding expectations.
During the six months to December 31 2007 total sales for the retailer -- which has re-aligned its previously high-end classic clothing ranges to a more on-trend, price driven offering in recent years -- grew by 35 per cent on the previous corresponding half year, while retail store sales alone grew by 21.5 per cent. During the period five new retail stores and two store expansions were also completed.
The sales results -- announced on January 17 -- were well above the market average for the period, said CEO Ian Moir.
"The sales performance is a continuation of the strong growth achieved over the previous 18 months. Lower prices and improved fashionability [are] proving a winning combination. Customers are responding well to the excellent value proposition that Country Road now represents."
Country Road also benefited from the replacement of wholesale sales with retail sales under new concession arrangements in Myer and David Jones.
Given the strong trading performance in November and December the company now anticipated profit before tax for the six months to December 31 2007 would be materially higher than for the previous corresponding half year, Moir concluded.
Full audited half-year results are expected to be released in mid-February.