OrotonGroup said trading conditions for the first few weeks of the new financial year has been “generally soft”.

Sally Macdonald, Oroton chief executive, said that while the market continues to rely on heavy discounting it will focus on brand development.

“We continue to be vigilant to what may lie ahead and are confident our strong brands and our multi channel model – across online, wholesale, full price stores, factory outlets and concessions – provide us with the flexibility to trade well and optimise our financial and brand performance,” she said.

“We are always focused on long term brand development and elevation. Our store refurbishment program is a critical part of elevating our brands and we have resisted discounting outside of key promotional periods and continue to focus on the whole package of what we do as retailers and brand managers – across visual merchandising, social media marketing and enhanced websites.”

At the company’s annual general meeting, the company noted that in the last 12 months, its net profit grew by 18 per cent to $23 million. The group’s return on capital employed also remained at more than 80 per cent.

According to managing director Ross Lane, the company continues to perform well with exclusive licensing of Polo Ralph Lauren and the opening of Oroton stores internationally.

“Six new Oroton stores were opened in FY10, four new stores have opened subsequent to year end and a further store is scheduled to open in the second half of FY11,” he said.

“We are excited to have opened our first international Oroton store in Hong Kong in the IFC Mall in September, and are currently planning two store openings in each Singapore and Malaysia. The Singapore stores are expected to open by January and the Malaysian stores in quarter four of FY11.”