Womenswear retail giant Noni B is expecting a big earnings rise after strong sales during fiscal year 2018.
In a trading update released today to the market – yet to be audited – the fashion firm said like-for-like sales in the period grew by 4.5 per cent; total sales grew to approximately $364 million; with online as a proportion of sales representing 5.8 per cent of total sales.
The group’s store network increased from 614 stores at the start of the period to 641 stores.
As a result, Noni B said earnings before interest, tax, depreciation and amortisation (EBITDA) for FY2018 will be around $37 million.
This represents an increase of over 70 per cent over the prior year’s underlying EBITDA of $21.7 million.
The company noted it was “pleased with this result and, in particular, the group’s sales performance through the key Christmas and Mother’s Day trading periods.”
Noni B said the 2019 financial year “will be a year of transformation” after the acquisition of the Millers, Katies, Crossroads, Autograph and Rivers brands from Specialty Fashion Group (SFG)
Since announcing the transaction, Noni B said its management teams had been working with SFG on an “implementation and integration plan” and was “pleased with the progress made to date in this regard, which will allow it to deliver on the expected benefits from the enlarged group, as previously outlined to the market.”
Scott Evans, Noni B chief executive, is now tasked with overseeing a broad based turnaround of the specialty stable, with an eye on breaking even in FY19. The brands posted a combined $25.7 million EBIT loss in 2017.
Noni B will release its FY2018 financial results in late August.
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