Specialty Fashion Group attributes online growth, lower lease costs and streamlined operational costs as contributing to $13 million in net profit.
Specialty Fashion Group, owner of Australian women’s fashion brands Millers, Katies and City Chic has announced a full year profit of $13 million, largely due to its ongoing push into online retail.
The retailer announced that, despite a slow second half, comparable store sales growth, better lease terms and streamlining operational costs have all helped to push the business towards profit.
Total revenue for the year was $569.5 million, down 0.5 percent year-on-year, while comparable store sales grew to 0.4 percent following seven store closures. Interestingly, the company has also recorded some of its all-time highest margins at 61.8 percent.
Online sales grew 50 percent throughout the year, reaching $21.9 million, or 3.8 percent of total sales.
Previously, Specialty Fashion Group has projected the need to close as many as 120 stores over the next three years as it streamlines its operations into a omnichannel structure.
Gary Perlstein, CEO of Specialty Fashion Group, said in a statement accompanying the results that the group is pleased with the progress the business is now seeing from its omnichannel strategy.
“Strong operating cash flows and careful investments have meant we ended the year with a strong balance sheet, leaving Specialty Fashion well positioned to invest in growth through physical and digital channels,” Perlstein said.