Apparel group Gazal has revealed lacklustre results for the 2013 fiscal half year, but has managed to keep its head above water, buoyed by some of its star brands.
The company, responsible for brands such as Calvin Klein, Van Heusen and Nancy Ganz, has confirmed an after-tax profit of $7.2 million for the six months ended December 31, 2012.
The figures, including discontinued operations, represent an increase of just 1.1 per cent compared to the previous corresponding period.
Sales revenue from continuing operations for the six months increased 3.3 per cent on the prior period to $146.4 million.
Revenue also increased in the direct-to-consumer segment mainly due to increased sales from a combination of new outlets and online expansion.
However, profit margins in this division were lower than last year driven by the planned impact of start-up costs incurred in setting up an online sales channel and new outlets.
Commenting on the results, the company said the wholesale segment recorded results in line with expectations, with sales in the tailored and casual division on the rise, compared to last year.
Overall, the Nancy Ganz and Hold me Tight shape-wear brands emerged with the best results, recording sales growth.
The profit contribution of Bisley Workwear was also up, compared to last year.
Going forward, however, Gazal said it is “planning for ongoing subdued trading conditions”, given some of the global economic uncertainties and the continued impact on the Australian market.
Considering this and the ongoing evaluation of further opportunities, the company added that it is “too early to provide guidance to shareholders on the full year results”.