Oroton profits plunge

oroton windowLuxury fashion retailer Oroton’s half year profit has plunged 57 per cent due to reduced discounting and costs from starting up a new venture with US label, Brooks Brothers.

Oroton made a net profit of $2.19 million in the six months to January 24, down from $5.08 million in the same period a year ago.

Earnings fell because of reduced discounting on Oroton products, plus start up costs of its venture with Brooks Brothers and the cost of opening three new Gap stores, Oroton said.

Mark Newman, Oroton CEO, said Brooks Brothers had experienced larger start up costs and a greater loss than expected during the first half due to the earlier than planned opening of the Sydney flagship store, delayed launch of the online store, and a higher outlet sales mix.

“Despite uncertain consumer confidence and economic conditions, we expect modest EBIT growth in the second half of FY15 compared to H2 14 as we gain traction with our strategy to elevate the Oroton brand, including growing margin with deduced discounting, a return to growth in like for like sales and higher average selling prices.”

Comments

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

Does your retail business have a loyalty program?
Vote

Twitter

A post-election bump in confidence seems to have waned over the month of June, with #retail continuing GFC-level co… https://t.co/ZcUudSV1Wr

1 week ago

Franchisor #RetailFoodGroup has revealed a potential $160m recapitalisation with investment firm Soliton Capital Pa… https://t.co/gF05UyZP1m

1 week ago

Getting in on the growing trend of retailers expanding into kids categories, @Freedom_Au is launching a new range o… https://t.co/ALrRYYlHG5

2 weeks ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered