Speciality Fashion Group confirmed it has almost tripled its profit for the first half of 2013, following a swift change of strategy.
The company, which owns brands Millers, City Chic, Crossroads, Autograph and Katies, reported a net profit of $17.97 million for the six months to December 31, compared to $6.16 million made last year.
Revenue for the period was $311.2 million, delivering earnings before interest taxation depreciation and amortisation (EBITDA) of $37.2 million, in line with the results guidance provided on January 25, 2013.
Commenting on the turnaround, the company revealed it had beat the “challenging economic and retail market conditions” throughout the half year through sales growth and margin expansion, largely as a result of aggressively pursuing online sales growth.
Improvements made in its supply chain, and minimising inflation of its costs of doing business have also assisted in the financial turnaround.
Going forward, the company said it expects an improved trading performance in the second half of fiscal year 2013 in comparison to the second half of the prior year.
The strategic initiatives in relation to e-commerce, customer relationship management and the supply chain are expected to continue to be the key drivers of improvement in performance.
However, the group said it will remain cautious as to the extent to which macroeconomic factors, both in Australia and abroad, may “adversely influence consumers’ propensity to spend on discretionary items”.
Changes to its retail network are also expected – as the the store rationalisation program to close or exit from under-performing stores continues.
However, the company has flagged the possibility to also add to its current portfolio of 892 stores, due to an improvement perceived in rental market conditions in “certain locations”.