Womenswear brand Noni B has reported a 58 per cent rise in its first half net profit, with second half earnings also expected to improve significantly.
The brand, which initially released guidance for the period of $2.1 million to $2.4 million, today announced an after-tax net profit of $2.4 million for the six months to January 1, 2012, compared to 1.5 million for the previous corresponding period.
Revenue was $64.1 million, compared with $62.9 million for the first half of the 2011 fiscal year, with comparable store sales in line with the previous year.
Noni B managing director David Kindl said he attributes the company's strong results to a fresh initiatives spearheaded by the brand and an effective cost-management strategy.
“This improvement in profit, despite weak consumer confidence, resulted from higher margins and tighter control of expenses following wide-ranging initiatives to improve performance,” he said.
These initiatives include the Noni B styling by appointment service, an increased investment in staff training, and the launch of an online portal, launched in September last year.
“Our online store is growing revenue steadily and we are pleased with its performance so far. We are also increasing engagement with customers on Noni B's million-plus loyalty database through Facebook and regular emails,” Kindl said.
Kindly added that the brand, which recently launched two more stores in Victoria, will continue to “fine-tune” its store network via a two-pronged strategy – expanding in states where it is under-represented – such as Victoria and Queensland – and closing under-performing stores.
Going forward, Kindl said that Noni B will continue to strengthen the brand to attract a broader customer base, and would also look to introduce new product ranges and increase online business.
However, he said conservative management of inventory, expenses and a steady balance sheet will be essential to render positive results for the second half of the 2012 financial year.
“Consumer confidence remains challenging and we expect these conditions to continue into 2012,” he said.
“We are confident that Noni B is well placed to improve its performance as demand recovers. Meanwhile, we will maintain a conservative approach to managing the company's inventory, expenses and balance sheet.”
Noni B was established in 1977 and currently operates 212 stores nationally across its Noni B and Liz Jordan womenswear brands.