Oroton figures looking good

SYDNEY: Oroton Group has reported a net profit of $16.7 million for the year ended July 26 2008, an increase of 70 per cent on the previous year's result of $9.8 million. Overall revenue in the continuing operations of Polo and Oroton increased 11.2 per cent to $122.6 million. Meanwhile like for like store sales performance for the period was 20 per cent for Oroton and 17 per cent for Polo Ralph Lauren, versus 5.0 per cent and 9.0 per cent respectively.

Sales productivity improved in FY08 as the group closed marginal stores and consolidated its factory channel in the previous year.

Highlights of FY08 included the opening of two new Oroton stores, the expansion of the brand's flagship Sydney store and the closure of two airport stores due to landlord site redevelopment. The Polo brand renovated four existing stores and opened eight new menswear concessions.

The company also moved its head office from Sydney CBD to new premises in Waterloo, streamlined its logistics capability and prepared for store development plans to roll out in FY09.

The outlook for FY09 included the proposed opening of eight new Oroton stores as well as at least three new Polo stores and expansions of selected existing Polo sites.