Noni B Defying Retail Gloom

January 13, 2012

Jane Harper  From:Herald Sun  January 13, 2012

WOMEN’S fashion chain Noni B gave shareholders a late Christmas present with a 60 per cent lift in its half-yearly profit guidance, defying the general doom and gloom in the retail sector.

And investors rewarded the company by pushing its share price up 37.5 per cent yesterday — its biggest one-day rise ever.

An increased focus on improving productivity, cutting costs and lifting profit margins was credited with Noni B increasing its profit forecast to between $2.1 million and $2.4 million for the first half of its 2012 financial year, compared with $1.5 million for same period last year.

The forecast suggests a return to form for Noni B, which blamed a focus on heavy discounting for net profit plummeting to $231,000 for the year to June 30, from $3.9 million in the previous 12 months.

Joint managing director David Kindl said that while sales were in line with 2011, earnings had improved thanks to a major review of expenses, streamlining operations and investing in sales team training to improve customer service. “We’ve made sure whatever we spend has an influence on the shop floor,” he said.

“Retail sales are very flat and consumer confidence is low, so we’ve worked on the things we can control and have had a better result.”

Mr Kindl said the chain’s new Noni B and Liz Jordan clothing ranges for women had also been well received by customers.

“The level of promotions has been about the same as last year, but we’ve been able to improve margins by sourcing our stock better,” he said.

Mr Kindl said December sales had been consistent with 2010, and said full details would be available when the company reported its half-year results on February 15.

Noni B also sought to tap into changing consumer trends last year, launching its online store in September.

Mr Kindl said the venture had got off to a positive start.

He said he was happy with the company’s turnaround in the past year. “We are very pleased, but there’s still a long way to go and we are looking to continue the improvement,” he said.

Noni B shares closed at 55c.

 

To your abundant success,

Leon Skaliotis – Founder, Retail Fundamentals.

Leon is an accomplished business coach and retail specialist in Melbourne, Australia, who  successfully coaches Melbourne retail owners on how to create highly profitable businesses by attracting shoppers and converting them into loyal fans.

To receive your free copy of “Retail Secrets Every Owner Should Know” click www.retailfundamentals.com.au

You can contact Leon on +61 425 83 3344  or email info@retailfundamentals.com.au

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