The owner of big name brands including Katies, Autograph and Millers has reported a 52.7 per cent drop in net profits for the 2011 financial year.
Specialty Fashion Group reported a net profit dive from continuing operations from $30, 717 million to $14,519 million over 2010/11.
Specialty Fashion Group chief Executive Officer Gary Perlstein said that despite the drop, he was optimistic about the group's future.
“Specialty's FY11 results reflect very tough trading conditions throughout the year...Retail is cyclical and eventually consumer confidence will return.”
Perlstein attributed a global shift toward online retailing, China's economic development and Australia's “high cost labour structure” as contributing factors toward the marked decline.
Specialty Fashion Group's trading continues to be impacted by macroeconomic uncertainties, including international debt.
“We expect the continuation of tough trading through the first half...We will manage closely our operating costs, whilst continuing to expand La Senza and our multi-channel offering,” Perlstein said.