Noni B charts bright future for Specialty Fashion brands

Fashion retailer Noni B Group expects that the five brands it acquired from Specialty Fashion Group earlier this year will make a positive contribution to the company’s 2019 EBITDA, thanks to achieving annualised merger benefits of $30 million sooner than expected.

The business initially expected the Millers, Katies, Crossroads, Autograph and Rivers brands to break even on an EBIDTA basis in FY19 after acquiring them in a loss-making state.

“We [also] expect the full-year benefit of merger synergies to be reflected in the group’s 2020 financial year results, together with a degree of gross margin improvement,” Noni B Group chairman Richard Facioni said at the group’s annual general meeting on Thursday.

“As a result, we anticipate the 2020 financial year to generate a significant increase in EBIDTA over the current financial year and to likely exceed market consensus of around $75 million, around double the group’s earnings in the 2018 financial year.”

In the short term, the brand still anticipates a decline in like-for-like sales. So far in the FY19 like-for-like sales are down 5 per cent on the same period last year.

Facioni stressed that despite this decline, online sales have continued to grow. The company saw online revenue increase by 67.8 per cent in FY18, representing 5.8 per cent of total sales.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.

Comments

1 comment

  1. Joel posted on November 26, 2018

    Bright Future.... Funny that nothing is mentioned about the same company being investagated for work place bullying by Worksafe Victoria.

Comment Manually

Twitter

Contributor Jared Dickson says a quick recovery is hard to believe, and two of the major retailers that will be und… https://t.co/4HF50kFARv

17 hours ago

Sarah & Sebastian's flagship store in Mosman, Sydney, looks more like a museum than your average jewellery shop. Ta… https://t.co/xQCMQlhrYL

21 hours ago

Julie Mathers is urging retailers and suppliers to switch to more sustainable shipping materials to cut out plastic… https://t.co/TGshVMAEZI

2 days ago