Luxury fashion retailer Oroton Group says its profit more than tripled on the back of higher sales and stricter cost and inventory management in FY23.
The company booked a net profit of $8.2 million in the 12 months ended July 30, up 3.5 times from last year.
This comes amid a 25 per cent growth in overall store sales, with same-store sales up by 12 per cent, attributed to investment in in-store experience, additional trading days, and a return to physical retail after the peak of the Covid-19 pandemic. Online sales grew 3.4 per cent.
During the year, Oroton opened stores in Paddington and Mosman in NSW, and at Claremont (WA), along with a pop-up store at Melbourne International Airport.
“Our customers are responding well to our revamped digital channels and quicker and more reliable fulfilment, along with more targeted and relevant content and communication,” said Jennifer Child, CEO at Oroton.
Oroton has also expanded its efforts to offer more sustainable fabric options including plant-based leathers.
“Oroton customers prize quality over quantity and they are increasingly conscious of their impact on the world. We see huge potential value in offering customers new ways to rent, reuse and resell Oroton apparel and accessories to extend their life and enjoy more variety with less environmental impact,” said Child.
The company expressed confidence in business to go through more challenging macroeconomic conditions ahead.