Local chain retailer Country Road has more than doubled its half year profit for the 2013 financial year, boosted by new additions to its brand stable.
The company, which acquired fashion retailer Witchery Group for $172 million in October 2012, recorded a net profit of $22.1 million for the six months to December 31, 2012.
The lift represents a rise of approximately $10.5 million on figures from the previous corresponding period.
Consolidated profit before tax was $29.0 million for the half year, up 112.3 per cent from $13.7 million in the corresponding period last year.
Total consolidated sales also increased in the period by 50.5 per cent compared to the previous corresponding period, to $331.3 million.
Total Australasian sales alone rose by 55.6 per cent on last year's results, and comparable store sales went up 10.7 per cent.
Commenting on the coup, group CEO Iain Nairn said the company is on the right track, but will continue to remain cautious given the tough trading climate.
“We are in the early stages of our objective of creating one of Australia's most prominent specialty fashion groups with complementary brands in the mid to upper tier of the market. [However] the market segments in which we operate are highly competitive and customers continue to be discerning in their search for value, as evidenced by the recent slow growth in the specialty fashion sector.
“We have commenced leveraging Country Road's existing information systems and business processes across the group with a measured and considered approach,” he said.
“While we are encouraged by our recent trading performance, we remain cautious given the continuing volatility in consumer confidence, new market entrants and ongoing global economic uncertainty.
“We will continue to prioritise the focus on growing our brands and customers as well as optimising costs and inventory levels.”