Fashion retailer, Noni B plans, to close seven stores in the next few months after poor sales resulted in a three per cent slide in its first half profit.
Noni B made a net profit of $1.89 million for the six months to December 31, down from $1.95 million a year ago.
David Kindl, CEO of Noni B, said the company continued to face difficult trading condition, with weak demand across all states and territories.
“The difficult trading conditions we reported at the annual general meeting in November continued during the remainder of the period, although sales improved slightly in December helped by additional promotions,” he said.
Kindl said the company planned to close seven underperforming stores in the second half of the year in response to declining sales.
He said further store closures were possible as it attempted to negotiate reduced rents on stores as leases expired.
Around 30 per cent of the retailer’s store leases are due to expire by the end of 2014.
“Where satisfactory terms cannot be negotiated, the store will be closed,” he said.
Mr Kindl said the woman’s fashion market remained challenging at the start of the second half.
Noni B announced a fully franked dividend of 1.5 cents per share, down from 2.5 cents per share a year ago.
Shares in the company were once cent higher at 61.5 cents as of 1110 AEDT.
AAP
