Based on positive trading to the end of April 2011, footwear group RCG Corporation has lifted its profit guidance for the remainder of the financial year for 2010/11.
The company, which owns Athletes Foot and Shoe Superstore, said it is confident in achieving its profit guidance of net profit after tax of between $8.4 million and $8.8 million.
“Achievement of this target will represent a 30 per cent rise on the previous year’s profit result,” Ivan Hammerschlag, RCG chairman said.
RCG said The Athlete’s Foot chain has continued its strong sales growth in the second half of the financial year and, on a rolling 12 month basis, group sales eclipsed $200 million for the first time in March 2011.
For the 10 months to April 2011, total The Athlete’s Foot sales growth was 8.9 per cent on the same period in the prior year, and like-for-like growth was 5.9 per cent.
“The sales were remarkable given the results of other comparable retailers and the impact of the devastating natural disasters throughout Australia and New Zealand during the second half of the financial year,” Hammerschlag said.
“Based on trading for May to date and our expectations for June, we are confident of The Athlete’s Foot achieving full year sales growth of 8 to10 per cent, as previously forecast.”
Strong sales have also continued into the second half of the financial year for Shoe Superstores. It has reported like-for-like sales growth of 17 per cent to the end of April. Like-for-like sales growth is expected to meet the upper end of RCG’s 12 per cent to 15 per cent forecast.
Meanwhile RCG Brand’s full year turnover is now expected to be $15 million, $1million higher than previously forecast.