TFG Australia, trading as Retail Apparel Group, has reported a strong start to the first financial quarter.
The Group, which operates brands such as Tarocash and YD, has reported retail turnover growth of 15.7% for Q1FY2023.
The performance followed a strong financial year for the Group in 2022.
For the year to March 27, Australian sales rose to $628.4 million and profit climbed from from $37.5 million to $52.4 million.
In the latest quarter, online retail turnover normalised at 8.2% compared to the same quarter in FY2022, now contributing 6.5% to total turnover.
This is down from the same period last year where it stood at 7%.
In a trading update, TFG warned of economic headwinds despite strong trade following the first quarter.
“While the solid recovery from the COVID-19 pandemic continued in Australia, increasing fuel and housing costs have started to drive up consumer prices."
In light of the current macroeconomic conditions, the Group expects consumers to remain under pressure.
"There will be a continued focus on further improving gross profit margins during the second half, expense control, working capital management and disciplined capital allocation whilst continuing to invest in
growth."