Country Road upbeat but wary

MELBOURNE: Country Road has announced a strong growth in profit before tax for the full year to June 30. The fashion and lifestyle retailer also said it was conscious of the current economic slowdown however and had put measures in place to ensure a smooth ride through tough trading terrain.

Releasing the retailer's June 2008 preliminary financial report today (August 21) Country Road CEO Ian Moir confirmed total sales were up 21.9 per cent on last year, while profit before tax (PBT) for the year was $14 million, up $4.8 million or 52.4 per cent on last year.

"Our sales performance is particularly pleasing as it was achieved in a tougher market, and against double digit growth in the previous year. We opened five new stores, expanded four exisitng stores and continued rolling out new fit out concepts in both Myer and David Jones. Our inventories have been well managed, and our cash flow remains strong."

"Trading for the first seven weeks of the new financial year has been encouraging, but we are conscious of the economic slowdown and the general expectation of tougher retail conditions. With this in mind, we will focus the business on controlling cost, making our operations more efficient and ensuring high quality, well managed inventories. We will however continue to invest in new stores and the expansion of our existing stores, with a view to delivering growth in returns to our shareholders."