Noni B has reported an underlying after tax profit of $1.5 million for FY2013, compared with $2.7 million in the previous year.
These results are in line with the company's predictions made in April that it would fall between $1 million to $1.5 million.
Comparative store sales was also down by 0.7 per cent, however sales increased by 1.5 per cent to $121.5 million for $119.7 million.
Joint managing director David Kindle blamed pre-election caution, particularly in July and August, impacted on consumer confidence in the women’s fashion market.
‘This is a disappointing result,” he said.
“Revenue increased despite one less week’s trading, however; earnings were affected by lower margins and higher expenses in a year when spending on women’s fashion was impacted by low consumer confidence.”
However, the company believes it will be able to turn this around by increasing sales through introducing new products and grow online sales especially international by introducing a currency converter for the site; increasing margins by reducing in-store promotional discounts; and reducing costs anywhere possible.
“We believe these initiatives – combined with our high standards of personal service, strong brands and exclusive, quality products – should enable Noni B to improve its performance,” Kindl said.
The company also plans to fine turn its store network, which increased to 219 from 215 during the year. Leases for three of the new stores were signed on the basis of a 12 month trial, and lease renewals depend on negotiating satisfactory terms which in many cases lead to rent reductions.