Oroton profits plunge
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.”