La Voca performance

SYDNEY: Noni B's latest retail proposition is struggling to find its feet in the local womenswear market.

La Voca, a middle-market chain launched by the retail group in 2006, has recorded an $800,000 loss for the half-year ended December 30 2007. This followed a slight fall in overall profits for Noni B, with reports indicating a $5.69 million after-tax profit compared to $6.13 million in 2006.

Managing director Alan Kindl said the Noni B chain had recorded a slight increase in profits, following the launch of a nationwide expansion and refurbishment strategy. He said sales had been particularly strong in Western Australia, Queensland and the Northern Territory.

"[This] is encouraging at a time when demand for women's fashion in regional New South Wales is still depressed by the lingering impact of the drought and the South Australian economy is flat."

Eight new Noni B stores opened throughout the first half of fiscal 2008 and a further $1.2 million was invested in the refurbishment of nine existing stores. Another nineteen stores are scheduled for a revamp along with three new  openings in the second half of 2008.

Four new La Voca stores were also opened during the half year, which brought the total number of sites in Australia to 19. Kindl said although the chain's  financial performance had been "disappointing" in the first half year, it remained as a long-term proposition and would take up to three years to make a significant earnings contribution.

"Marketing expenditure has been boosted and with a dedicated new team now driving the business, we are increasingly positive about its prospects during the coming winter season and beyond," Kindl said. "The company's costs remain under control, overheads falling as a percentage of sales. Cash flow remains strong and the company has no debt."