The PAS Group has reported solid revenue and profit growth, driven by acquisitions and a 149 percent bump in online sales.
Australian apparel business the PAS Group has reported strong growth in its online operations, with online sales increasing by 149 percent over FY2016 to account for more than 9 percent of retail sales.
The FY2016 growth in online sales comes on the back of a 58 percent bump in online sales over FY2015.
The group’s retail sales growth has been driven by strong online sales growth; the acquisition of JETS and White Runway, which contributed $4.4 million to group sales; and the impact of 32 new stores opened in FY2016 and 40 new stores in FY2015.
The group reported net profit growth of 14.3 percent to $11.3 million.
“The Company has delivered a strong full year result with positive like for like retail sales and good earnings growth over the prior year; the result is especially pleasing in light of the challenging trading environment in the second half,” said PAS CEO Eric Morris. “The positive like for like sales growth has continued in the first eight weeks of FY2017 in line with expectations.
“PAS continues to successfully deliver against its growth strategy with several initiatives underway that will underpin this growth over the long term. With no debt and good cash flows, the business is in a strong financial position with the capacity to make further value enhancing acquisitions.”
The group has seen particularly strong online growth from its Review and Black Pepper brands. It rolled out a new Review website over FY2016 and implemented “store-to-door” fulfilment across all Review and selected Black Pepper stores. According to the group, online sales for Black Pepper more than doubled making the online store the top performing Black Pepper store.
Last month, PAS Group announced the sale of Metalicus, with the brand to be divested by the end of September. “The transaction is not expected to give rise to any material gain or loss on sale in FY2017 and although Metalicus sales in FY2016 were c.$25 million, the business has been loss making,” the group said.
For FY2017, the PAS Group has announced an online collaboration with Myer enabling Myer online customers to access the full Review range. The group also plans to continue online investment with the launch of new websites for Black Pepper, White Runway and JETS, as well as increased digital marketing and an upgrade to its loyalty platform.