Specialty Fashion Group (SFG) has joined Pacific Brands in returning to profit.
The fashion powerhouse reported full year profit for 2012/13 of $12.97 million, compared to a loss of $2.8 million the previous year.
The company, whose brands include Millers, Katies, Crossroads, Autograph and City Chic, said the turnaround was due to a number of factors.
This included higher margins due to lower product and freight costs, lower cotton prices and favourable currency exchange rates.
Lower rents also contributed to the profit turnaround, as well as exiting leases on underperforming stores and staff rostering changes.
The company said it still remained cautious about the future.
“The group remains very cautious as to the extent of organic growth that may be achieved at the current time given the ongoing lack of consumer confidence in Australia,” Specialty Fashion said in a statement.
“Management continues to explore all options to grow the Specialty Fashion Group through physical and digital channels.”
The group operates 886 stores across Australia and New Zealand.
It opened 40 new stores during the 2013 financial year and closed 47 underperforming sites. The store closures included 18 La Senza locations.
The group terminated its licence for La Senza in Australia after product developed for the North American market failed to translate to Australia.
While annual revenue fell 0.5 per cent, to $569.5 million, online sales grew 50 per cent to $21.9 million.