Country Road Group (CRG) turned a profit last year amid a modest sales uplift, with management attributing the positive results to disciplined trading practice.

The fashion retailer reported earnings before interest and tax (EBIT) of $2.3 million for the year ended June 28, a 113 per cent improvement on the prior year.  

Group sales increased 1 per cent, with comparable sales up 1.5 per cent, while gross profit rose 3 per cent.

The group said a disciplined trading strategy, improved inventory productivity and continued cost management strengthened profitability in a challenging retail environment.

The retailer reduced its inventory by 14 per cent during the year to respond flexibly to changing customer demand and trading conditions, as well as reduce reliance on clearance activity.

“Our focus has been on building stronger foundations, while ensuring each of our brands has a clear positioning, compelling product offer and the ability to grow sustainably over time,” said CRG CEO Steven Cook.

Within the portfolio, Witchery and Politix continued to benefit from their repositioning strategies, delivering comparable sales growth of 9.5 per cent and 10.2 per cent, respectively.

Country Road showed signs of improvement through the second half and entered FY27 with “elevated leadership”. Mimco began laying the groundwork for its next phase of growth, while Trenery had a clearer brand positioning, more focused assortments and a more distinct product offer.

“We’ve made meaningful progress over the past 12 months and enter FY27 with a clear plan and a solid platform to build on.

“Each of our brands has a clear role to play, and we’ll continue investing in product, customer experience and capability to support sustainable growth across the portfolio,” Cook added.