Country Road FY profit dips as home sales fall

AUSTRALIA: Country Road FY profit dips as home sales fall

By Richard Woodard | 23 August 2012

FY net profit down 11.6% to A$16.1m
Total sales up 1.8% to A$419m
Australasian sales down 2.6% to A$355.2m

Retailer Country Road has recorded a double-digit fall in full-year net profit, affected by falling Australasian sales and a charge of A$1.5m from its acquisition of the Witchery Group.

Retail sales were down 0.7%, while total concession sales rose 8.1%, and pre-tax profit was down 9.7%.

“Retail trading conditions in the second half in Australasia continued to be extremely difficult as consumers cut back on their discretionary spending,” said Howard Goldberg, company CEO.

“We continued with our strategy of less discounting in Country Road and Trenery stores and concessions. We also closed a number of unprofitable concession and retail outlet stores.”

Sectors: Apparel, Finance, Retail