• FY profit drops 8.2%
  • Sales revenue down 7.6%
  • Dividend payments scrapped

Women's fashion retailer Noni B Limited has scrapped dividend payments after posting an 8.2% drop in annual profit, but says there are signs that consumer sentiment is improving.

"Although there has been uncertainty among Noni B's traditional 'baby boomer' market, demand has improved during recent weeks and our new season ranges have been well received," the company said.

It comments came as net profit for the year to 28 June fell to AUD2.3m (US$1.9m) from AUD2.5m a year earlier after margins were hit by discounting.

Total sales revenue was down 7.6% to AUD118.2m from AUD127.9m last time.

"Our strategy to attract a broader market demographic to Noni B stores and to become the dominant fashion retailer for 40+ women is beginning to win new customers," said joint managing director David Kindl.

Noni B operates 214 stores, with its two brands - Noni B and Liz Jordan - targeting women aged 40-plus.