Clothing and footwear group Pacific Brands Ltd says it expects further growth this year after reporting a 29 per cent hike in annual net profit.

The company reported net profit for the year ended 30 June of AUD61.1 million compared to AUD47.4m in the same period last year, boosted by good performance of shoes and underwear.

Pacific says it expects more growth in the current financial year through a focus on brands, product development, supply chain and operational efficiencies, and potential acquisitions.

Chief executive Paul Moore said: "This is an encouraging result in an environment of heavy retail discounting and time of price deflation. Trading for the first few months of 2006 has been consistent with group expectations."