RCG Corporation has reported rising sales for its footwear businesses The Athlete's Foot (TAF) and the Super Shoestore (SSS), along with a confident outlook for fiscal 2011.
According to a report released on the Australian Securities Exchange today, the company expects a full year net profit of up to $8.8 million, at the upper end of earlier guidance.
The company reported net profit for the 12 months to June 27, 2010 of $6.87 million, but said strong sales growth had continued in the second half of 2010/11 at The Athlete's Foot and “on a rolling 12 month basis, group sales eclipsed $200 million for the first time in March 2011”.
Total sales for TAF for the first half of FY2011 saw on an increase of 9.7 per cent to $88.7 million, compared to figures from the corresponding period ($80.8 million), and like-for-like sales were also up 6.1 per cent.
The footwear business, which currently boasts 147 stores across the country, also opened three new stores during FY2011 and renovated eight stores to apply a new store design and increase floor space, from 90 square meters to 150 square metres. Remaining stores are now being converted at a rate of 12 stores per year, with plans to have 34 large format stores completed by the end of FY2011.
RCG has also added two news stores to the Super Shoestore stable within the last six months, and has revealed it currently on the hunt for new sites, with plans to open up to eight new stores during FY2012.
SSS recorded a total sales growth of 23 per cent from $1.95 million to $2.30 million for the first half of FY2011 and saw a 18 per cent rise in like-for-like sales for the period.
RCG Brands' full year turnover was expected to be $15 million, $1 million higher than previously forecast, the company said
Looking forward, RCG said it expects TAF to achieve a full year sales growth of eight per cent to 10 per cent as previously forecast” based on trading for May to date and expectations for June.
"We expect full year like-for-like sales growth to meet the upper end of our 12 per cent to 15 per cent forecast,'' RCG said.
The company said full year turnover for RCG Brands was expected to be $15 million, $1 million higher than previously forecast.