Country Road is one of the latest retailers to take a beating from the poor consumer sentiment.
It has reported that Australasian sales dropped 10.9 per cent in comparable stores. But when the results accounted for the ten new Australian stores, including seven Trenery stores and the launch of its online store, group sales had only dropped 2 per cent.
Despite this, group sales had grown by 10.6 per cent on last year as strong sales in South Africa contributed to the results.
CEO Howard Goldberg said the retail outlook remains challenging with expectations on sales to remain conservative.
“Country Road has performed well to deliver these profit results in an increasingly tough Australian retail environment. In anticipation of the challenges, Country Road has continued to implement significant cost saving initiatives and enforce strict inventory control and cash management. In addition, the restructure of the South African business and expansion of our online store has assisted us in improving our bottom line,” he said.
“Country Road will continue its disciplined approach and focus on what it does best, creating and delivering uniquely fashionable quality products at great value whilst improving shareholder returns.”
Country Road now expects profit before tax to increase between 30 per cent and 40 per cent on the prior year.