Womenswear retailer Noni B has suffered a 58 per cent drop in half-year profit to $1.52 million, down from $3.64 million in the previous corresponding period.
The results, reported on the Australian Securities Exchange today for the six months to December 26, 2010, also revealed that overall sales for the retailer were $61.4 million, with comparable store sales down 2.1 per cent.
Noni B joint managing director David Kindl said low consumer confidence due to higher energy costs and the federal government's flood levy may have impacted sales. He also noted that the floods in Queensland and Victoria and Cyclone Yasi had disrupted trading in some stores across those states.
“Low consumer confidence since the federal election has had a major impact on demand, and the cool wet weather during summer delayed purchases of our summer ranges,” he said.
“While inventory remains under control and we have avoided the most aggressive discounting, we have had to meet the market, resulting in a slight decrease in our gross profit margin.”
Despite the dive in profit, Noni B opened five new stores during the half year, including one in each the Sydney and Perth central business districts and Kindl said the new season collections of its two fashion labels, Noni B and Liz Jordan, were doing well.
“Our new season ranges have been well received. However, we are cautious about demand in the coming months as consumer confidence remains volatile. We are continuing to manage costs carefully, although marketing spend has been increased with the aim of expanding market share.”
As reported exclusively in Ragtrader's February 11 print issue, Noni B is also gearing up to launch an exclusive designer line into 130 stores this April.