Luxury accessories retailer OrotonGroup has cast aside weak domestic retail conditions to post an eight per cent increase in full year profit while boasting a better than expected start to the new fiscal year.
Shares in the handbags, wallets and jewellery retailer bucked the downward market trend to close seven per cent, or 50 cents, higher at $7.67 on Thursday after recent sales exceeded expectations.
Chief executive Sally Macdonald said the retailer had increased sales, margin and profit as it rolled out at least four stores in Asia in fiscal 2011.
“The group’s sales in the first seven weeks of full year 2012 have exceeded expectations, but, as always, we remain vigilant to the macro environment ahead,” Ms Macdonald said.
The Asian region represented a significant opportunity for Oroton over the long term and early results were encouraging, she said.
OrotonGroup reported a $24.79 million profit for the year to July 30, up from $23 million in the previous corresponding period.
Like-for-like sales across the group grew by seven per cent, up from two per cent in the previous year.
Revenue of $164.4 million was 12 per cent higher than the previous year.
Earnings per share were 60.8 cents, up 7.9 per cent from 56.3 cents previously.
OrotonGroup began opening stores in Asia in the year to July and has committed to opening one more in November.
It has plans for a further three store sites – in Singapore, Malaysia and Hong Kong – this fiscal year.
“In addition to these four new Oroton Asia stores, we will open four Ralph Lauren concession stores in domestic department stores and one Oroton store in Australia, to bring a total of nine new stores for the group in fiscal year 2012,” Ms Macdonald said.
“As part of our long-term strategy, we are planning a minimum of four Oroton stores a year in Asia for the next several years.”
She said the company’s online business, launched in 2006, continued to be its fastest growing and largest outlet.
The company declared a final, fully franked, dividend of 26 cents per share.
