Noni B falls flat

noni bTroubled women’s fashion chain, Noni B, has posted a sharp decline in sales and a half year net loss of $2.4 million.

Revenue dropped 8.6 per cent to $57 million in the six months to December 28, and comparable store sales fell 5.4 per cent.

Gross margins slipped from 61.4 per cent to 59.2 per cent, leading to a $2.4 million loss compared to a $1.89 million net profit in the same period a year ago.

The retailer’s founders, the Kindl family, sold their 42 per cent stake in the business to investment company Alceon Group, and twin brothers, David and James Kindl, stepped down as joint MDs last year.

Following its profit result, Noni B has also confirmed several senior management changes including the departure of CFO, Ann Phillips, and the appointment of former Pacific Brands CEO, Sue Morphett, as a non executive director.

Noni B says it has begun the search for a new CFO follow the announcement of Phillips’ resignation on Monday. Phillips joined Noni B in 2008 and was appointed CFO and company secretary in 2010. She will step down from the role next month.

Changes have also taken place on the board of Noni B, with the appointment of Sue Morphett as non executive director and the departure of two directors, Joycelyn Morton and Leo Tutt.

Morphett joins Noni B with more than 25 years of brand management and retail experience and was CEO of Pacific Brands from December 2007 to September 2012.

Morphett is a non executive director Asaleo Care Limited, Fisher & Paykel Appliances, and Godfreys Group. She is also chairman of the board of Manufacturing Australia.

Morton has been a director of Noni B since 2009, serving as chairman from May 2013 until December 2014, while Tutt has been a director with the fashion company since May 2013.

Comments

5 comments

  1. Avatar

    Brett Stevenson posted on February 24, 2015

    It sounds good (CEO of Pacific Brands 2007 to 2012) but it's worth considering that Pac Brands has been in an almost constant downward spiral since (share price, sales, divisions being sold, unstable senior management, changing CEO's and directors etc Its relatively easy for a new CEO to come in (as Sue Morphett did at PacBrands) and 'downsize', close operations, get rid of staff, cut costs etc while being paid a very handsome salary. Al Dunlap perfected that technique in the States and it may earn the CEO a lot of money but at what cost. I hardly see this as a positive appointment for Noni B unless of course ........ reply

    • Avatar

      lew hoek posted on February 24, 2015

      Well said Brett, your spot on. reply

  2. Avatar

    Brett Stevenson posted on February 24, 2015

    It's amazing how many of these CEO's who really have not performed very well then circulate for the rest of their careers as directors of companies, and very well paid. I would estimate Sue Morphet is raking in a good $500k plus from her various positions. And of course spends lots of time on each company! (I'm being cynical - how could she given that it is five currently). Just look at the name of Harry Boon (remember Paperlinx) who is Chairman of Asaleo Care Limited (and who knows which other companies). They just circulate around through networking seemingly irrespective of their performance. Just follow all the past Directors of Pac Brands - dismal performance and oversight yet it seems to be their entree to larger companies. e.g. Nora Scheinkestel who also lectures at the Melbourne Business School with corporate governance as her specialty. Its a merry go round of networking. Not so sure about the competence and track records though. Whenever do these directors stand up and say we really did not oversee that company (herein mentioned Pacific Brands) very well. All too often they just move on with little consideration given to their performance in their fundamental role of looking after the companies where they are directors. reply

  3. Avatar

    may posted on May 24, 2017

    I returned 2 clothes bought online,but they did not refund my money back.No response from their compay,I emeiled them 3 times.Will not buy again!!! reply

  4. Avatar

    Michelle posted on July 5, 2018

    Im not surprised, their customer service is crap, especially the bitch at Wallsend Plaza shop. Won't be going back there. reply

Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside Retail Polls

Do you plan to participate in Halloween this year?
Vote

Twitter

Do you enjoy receiving our daily Newsbriefs, weekly publications, quarterly magazines and attending our Academy eve… https://t.co/JdcO4xcwOH

2 weeks ago

Know an outstanding retailer supplier? Nominate them for the 2020 Retailer Awards: https://t.co/HsvxfGp6aK #RA20https://t.co/FsSnykknRF

3 weeks ago

Do you know any retailer with exceptional customer experience? Nominate them at 2020 Retailer Awards:… https://t.co/Tc3DDjJbFV

3 weeks ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered