Country Road’s decision to acquire the Witchery Group has helped beef up the company’s results for the first half year.
Country Road expects half year profits to soar up to $29 million.
Fashion retailer Country Road is off to a good start for the financial year of 2013 reporting positve results for the first quarter.
The year started with Australasian comparable sales up 13.5 per cent on the prior year.
Country Road has bought Witchery for $172 million from Gresham Private Equity while Howard Goldberg, the current CEO of Country Road, steps down.
Country Road has joined the long list of retailers reporting a contraction in their sales where it saw its Australasian sales fall 2.6 per cent.
Fashion retailer Country Road seems to have had a succeeding half year, reporting that sales were up 5.1 per cent on the corresponding period last year.
Country Road has said that it expects difficult trading conditions this Christmas after seeing its sales for the first quarter take a slide.
Country Road is one of the latest retailers to take a beating from the poor consumer sentiment reporting that Australasian sales dropped 10.9 per cent in comparable stores.
Country Road has agreed to pay $1.1 million in compensation to former CEO John Cheston for unlawful dismissal.
Country Road director Ian Moir said the challenging trading conditions were brought about by a significant drop in consumer spending through the half.
The company said Country Road expects a profit after tax growth of between 3 and 5 per cent on the prior year for the same period.
The retailer is expecting the challenging first quarter trading conditions to continue right through Christmas before improvements will be seen in early 2011.
Country Road, Witchery, Rodd & Gunn, Max are just some that have opened at the centre today and will help bring the total number of retailers to 126.
Final-year RMIT University Visual Merchandising students have been provided an opportunity to put their skills to the test.
After just two months on the job, Country Road's John Cheston has resigned from the position of CEO.
Country Road, Aldi and independent retailer Allspares and Bearings and were the big winners at the 2009 ARA Australian Retail Awards.
Aldi, Country Road, Subway and L'Occitane are to battle it out for the Australian Retailer of the Year title.