OrotonGroup said that while there has been a lot of attention on the general negative retail climate in Australia the company is performing well.

Sally Macdonald, OrotonGroup CEO, told investors at the annual general meeting that Oroton continues to report good news.

“The positive momentum we achieved last year has continued in the first 17 weeks of the financial year with strong positive like for like sales growth,” she said.

While admitting the apparel marketing is “generally soft”, Macdonald said the company’s growth is being driven by its online channel, selective promotional activity and product initiatives across all of its channel distribution.

Looking forward, the company will strategically continue its expansion in the Asian market with plans to open four new Oroton stores before the end of this financial year.

But locally, there are plans to close stores.

“We are contemplating other store closures on lease expiry with no decision made yet,” Macdonald said.

“Whilst these stores are profitable, with the extraordinary growth of online, we believe it makes strategic sense to close some lower volume stores at expiry and expand some stores in strategic locations to showcase our full range.”

So far, an Oroton store in Auckland was closed on lease expiry with another planned for closure in May. But the company reassures that each store will be decided on a case by case basis.

Meanwhile, it has already expanded its Oroton Indooroopilly and Parramatta stores and said they are “so far pleased with the results”.