Specialty Fashion Group (SFG) will look towards investing in its store portfolio, direct sourcing team and systems, and customer community relationship management capabilities to bring as its core strategies to uplift its profits in the long-term.

This comes after the company announced that heavy discounting and rising cotton prices resulted seeing the women’s fashion operator’s net profit for the first half of the year drop 37 per cent from $26.6 million to $16.8 million.

CEO Gary Perlstein said its first half results reflect a very difficult trading environment.

“Whilst the benefits of these strategies will not be immediately evident in the trading result, we are confident that we have made and continue to make the right investment decisions in order that the group will reap the benefits in the long term,” he said.

SFG, which owns the Millers, Crossroads, Autograph, City Chic chains, has also recently entered into a partnership with US lingerie chain La Senza.

“We have also pursued new growth opportunities to broaden our market reach through the acquisition of the La Senza licence and investment in e-commerce,” Perlstein said.
“The partnership with La Senza is working well and opening a big multitude of channels for expansion.”

Meanwhile its City Chic’s brand was launched as a US online business in November.

“[It] has enabled us to export the success of the brand’s unique offering to the plus size girl in America. We expect to generate superior investment returns.”

The company also reassured that despite its profit results, it continues to be in line with the profit guidance announced of $33 to $34 million.