Noni B surges from brink right back into fashion
RETAILER Noni B has continued its turnaround from near collapse to more than double its first-half sales on strong Christmas trade and the acquisition of brands including Millers and Katies.
Sales grew by 140 per cent to $457 million for the six months ending December compared to the same period a year earlier, the womenswear group said yesterday.
The surge follows it buying Millers, Katies, Crossroads, Autograph, Rivers and City Chic from Specialty Fashion Group for $31 million last year.
The brands have also helped, but not stopped, sliding sales at the fashion group. Like-for-like sales, which strip out the impact of stores opening and closing, fell 3.1 per cent for the six months to December.
That is a slowdown from the 5 per cent sales slide the company posted in the same period a year earlier.
The retailer also said it had notched up a 1 per cent rise in like-for- like sales during the crucial December trading month.
First-half earnings are expected to reach at the upper end of the $25 million to $30 million analysts had forecast. The group reaffirmed a full-year earnings target of $45 million.
“Noni B is pleased with this result, which reflects the success of the group’s focus on integration efficiencies, restocking of the newly acquired brands and continued online improvements to date,” said chief executive Scott Evans.
“The group remains confident for the second half of the financial year as it continues to deliver synergies and improve gross profit sustainably across the portfolio of brands.”
Noni B expects the suite of former specialty brands to triple its annual revenue to about $1 billion and lift volumes of garments sold to 40 million items.
Private equity group Alceon became the major shareholder in Noni B in late 2014 after it had posted three straight years of losses.