Fashion retailer Country Road has reported a 5.1 per cent sales increase for the first half of the 2012 fiscal year, despite a tough trading environment.
The brand, which has 88 concession stores and 68 stand-alone stores in Australia (including Trenery), recorded a total sales figure of $220.1 million for the six months to December 31, 2011, compared to $209.4 million for the previous corresponding period.
However, total Australasian retail sales, including new stores, were 0.3 per cent down on last year, with like-for-like sales down 4.2 per cent.
Despite this, Country Road said it expects first-half post-tax profits to rise, and has predicted a profit after tax growth of between 10 per cent and 12 per cent on the prior year for the same period.
Commenting on the year ahead, Country Road chief executive Howard Goldberg said the company would remain cautious and realistic.
“Retail trading conditions have remained difficult as consumers have been cautious with regard to discretionary spend. Despite this, we have reduced our levels of discounting and improved our margins,” he said.
“Our online store continues to grow and we have opened limited new stores, but the retail outlook for the next six months remains challenging. Our expectations on sales remain conservative and we will continue to drive a more efficient business, improving shareholder returns.”