Noni B escapes discounting trap

23 August 2010

Womenswear retailer Noni B has avoided widespread discounting to post a better than expected full-year net profit of $3.9 million.

Managing director David Kindl said the result, which compared with earlier guidance of $3.4 million to $3.8 million, demonstrated the company's success in paring back costs while maintaining customer loyalty.

The company's earnings margin before interest, tax, depreciation and amortisation rose to 8.1 per cent from 6.5 per cent in 2009. No guidance was provided for 2010-11.

''Comparative store sales in the ACT, Western Australia and the Northern Territory were higher than last year; total comparative store sales fell by just 0.5 per cent, despite the end of the government stimulus packages that boosted demand in 2009,'' Kindl said. He also noted that the company's outlook remained confident despite the challenges presented by the current climate.

"We will continue to strengthen our relationships with our customers, provide fashions that they desire, control inventory and costs, and expand awareness of the Noni B and Liz Jordan labels among a wider demographic. While we remain cautious about demand during the coming months, the company is in a stronger position than a year ago and is well placed to take advantage of an increase in consumer confidence."

 

Have your say