Business Description:
Specialty Fashion Group Limited is a specialty fashion multi-branded women's apparel retailer and brand owner, tailored mostly to women of various ages and sizes. The company operates the Millers, Crossroads, Katies, Autograph, City Chic and more recently, La Senza. Most stores are located on the Eastern seaboard, with the rest throughout Australia and NZ. Its strategy is to focus on the value end of the market.

Strategy Analysis:
Brand segmentation, inventory management and offshore product sourcing all form part of the current turnaround strategy. Each brand will develop its own style and character which should help increase price points over the medium-long term. SFH plans to eventually source a large majority of its inventory offshore, allowing it to exploit higher margins and build its portfolio of brands. Smaller bolt on acquisitions will be preferred until a large group comes on the market at an attractive price. Specialty Fashion Group reported NPAT down 53.4% to $14.17m for the year ended 30 June 2011. Revenues from ordinary activities were $570.30m, up 2.4% from last year. Diluted EPS was 7.4 cents compared to 15.7 cents last year. Net operating cash flow was $33.81m compared to $49.56m last year. The final dividend declared was 4 cents, taking the full year dividend to 8 cents in line with 8 cents last year.