Womenswear retailer Specialty Fashion Group (SFG) has forecast first half profits to nearly triple on the back of cost savings and improved sales.
SFG expects net profit for the six months to December 31 to be in the range of $17 million to $18 million.
The group, which owners Katies and Millers, posted a $6.2 million profit in the corresponding period last year.
CEO Gary Perlstein said this significant increase is due to an easing off of cost pressures.
A major contributor is the company's supply chain, which delivered reduced product cost prices and freight costs, Perlstein said. Falling cotton prices and reduced cost of fabrics also played a part.
"Our continued focus on our strategies to improve sales, margins and costs of doing business has meant we have delivered a significant turnaround in trading performance.
"The economic uncertainties and structural changes affecting retail have not gone away, but we have pulled all the levers within our control to achieve sustainable improvements and our results reflect this."
Sales in the group's 892 stores in the six months to December were up two per cent on the previous corresponding period, and revenue of $311.2 million was up 1.3 per cent from the same period last year.
SFG is due to release its finalised first-half financial results on February 18.
Earlier this month, the group announced it would pull its La Senza license this year.
Katies: Part of the SFG brand stable.
