Oroton Group has recorded a net profit rise ahead of its first show at Mercedes-Benz Fashion Week Australia, also hinting at possible brand acquisitions in the near future.
Net profit for the half year increased four per cent to $16.1 million, with group revenue increasing 13 per cent to $99.1 million.
Like for like sales performance was also up nine per cent for all Oroton Group brands, which include Ralph Lauren and Oroton.
Oroton Group chief executive Sally Macdonald said the first half of fiscal 2012 had been a pleasing one, with net profit growth also including $1.2 million worth of costs in establishing its global stores.
The group's earnings before interest and tax also increased seven per cent for fiscal 2012, to $24.2 million.
"We believe the retail market in Australia is restructuring rather than in a cynical downturn and as such remain committed to our strategy," MacDonald said.
This strategy includes growing the brand's business in Asia, with 10 per cent of Oroton stores now situated in the region.
It also involves reducing Oroton's fixed cost base domestically with shorter leases and fewer but larger stores, as well as expansion through multi-channel retail.
Oroton Group operates 60 Oroton stores and 32 Ralph Lauren sites, opening eight new stores and closing one at lease expiry. The brand's e-tail arm continues to be its largest store, seeing a 60 per cent sales surge on the same period last year.
Oroton-branded stores continue to emerge in South East Asia, with the brand opening two sites in Malaysia and plans to launch a site in Kuala Lumpur in July.
"Our outlook for the remainder [of the year] is cautious," Macdonald said. "While we hold a differentiated position from most retailers as a vertical brand owner in Oroton, with full control of our distribution and pricing, we are focused on long term brand development and investment in our Asian expansion strategy.
"Acquisitions remain a possibility when they meet strict financial hurdles."