CEO Sally Macdonald said Oroton continued to perform well, adding that “in the past 12 months we have focused on upgrading the retail environment and making our online offering more interesting with product videos, innovative imagery and content. The knitwear, shoe and lingerie/underwear category expansions are proceeding smoothly and our average transaction value has increased overall.”
Oroton had also reduced its total expenses to 47.1 per cent of revenue in 2009-10 through improved logistics, administration and more efficient marketing expenditure. This contributed to earnings before tax and interest of $32 million, or 21.9 per cent of revenue, up from $28 million, or 20.6 per cent of revenue, the previous year.
The group posted an annual net profit of $22.97 million for the year ended July 31, up from $19.4 million the previous year. Revenue rose 7.9 per cent to $146.37 million, while like-for-like store sales had grown 10 per cent for Oroton and fallen six per cent for Polo Ralph Lauren.
Macdonald commented that the current “value-oriented” climate for apparel had impacted the latter brand, indicating she remained confident of its return to positive growth this year without the necessity for discounting.
Oroton Group opened six stores in 2009-10, taking its total to 76, with another four to open this financial year. An Oroton store opened in high end Hong Kong precinct IFC Mall earlier this month while a Singapore presence was expected to be launched by year end.