Fashion empire OrotonGroup has flagged international expansion as a key priority going forward, following lacklustre results for the 2013 half year.
The company reported net profit after tax up just 2.1 per cent to $16.4 million for the half-year ended January 26 2013.
Group revenue also saw a slight rise of 2.4 per cent to $101.48 million, compared to the previous corresponding period.
Commenting on the results, OrotonGroup CEO Sally Macdonald said the group's result was “solid”, given the challenging retail environment.
However, she added that the focus going forward would be on tapping new and existing overseas markets, such as the lucrative Asian regions.
“Our international investment and rollout in Asia continues to be a key strategic focus. We have committed to two new Oroton stores in Hong Kong and Shanghai, China, both expected to open in the first quarter of fiscal year 2014,” she said.
The new store launches will take the Oroton's total Asian store portfolio to nine.
Macdonald revealed that the group has also signed a distribution agreement with a Dubai-based company for at least six Oroton stores to open in the United Arab Emirates (UAE) and Qatar region over the next five years.
The first of these stores in expected to open in 2014 in Dubai and/or Abu Dhabi.
The retail rollout is expected to plug a hole in earnings as the group's 23-year distribution agreement with Polo Ralph Lauren nears to an end.
As previously reported on ragtrader.com.au, the OrotonGroup lost the rights for Ralph Lauren Australasia earlier this year, and will no longer distribute the brand in Australasia once the license agreement expires in June 2013.
OrotonGroup added that it remains cautious regarding the outlook for 2013, due to the “subdued retail environment, undergoing increased global competition and price restructuring”.