Oroton profit rises amid uncertainty
The fashion brand reported a net profit of $16.4 million for the six months to January 26, a 2.1 per cent rise on the previous corresponding period, as group revenue rose 2.4 per cent. It declared a fully franked interim dividend of 22¢.
Oroton shares closed down 18¢ at $7.41 on Thursday.
Group revenue was $101.5 million in the first half, up from last financial year's $99.1 million. Like-for-like sales remained flat.
Oroton chief executive Sally Macdonald said the results were solid given the challenging retail environment, international competition and discounting.
Shaw Stockbroking analyst Danny Younis said that while there was positive news about Oroton, such as its expansion into the Middle East and its move from a net debt to net cash position, there was uncertainty about the Ralph Lauren licence ending.
"That's the question the market's actually asking and wants an answer on," he said.
Frequently Asked Questions about this Article…
Oroton reported a first-half net profit of $16.4 million for the six months to January 26, a 2.1% increase on the prior comparable period. Group revenue was $101.5 million (up from $99.1 million), while like‑for‑like sales remained flat. The company also declared a fully franked interim dividend of 22¢.
Despite the small profit rise, Oroton shares closed down 18¢ at $7.41. The market reaction reflects ongoing uncertainty around key issues flagged in the result, including flat like‑for‑like sales and questions about the future of the Ralph Lauren licence.
Oroton's Ralph Lauren licence is due to expire at the end of June. The company has not provided a clear outcome, and analysts say the expiry creates uncertainty that the market wants addressed—because it could affect product offerings and revenue streams tied to that licence.
Yes. The article notes Oroton is considering acquisitions and international expansion, including a move into the Middle East, which analysts flagged as a positive development for growth.
According to Shaw Stockbroking analyst Danny Younis, Oroton has moved from a net debt position to a net cash position, which is a notable improvement in the company's financial position.
Oroton chief executive Sally Macdonald described the results as solid given a challenging retail environment, international competition and discounting, signalling management views the performance as resilient under pressure.
Shaw Stockbroking analyst Danny Younis pointed out positives such as Middle East expansion and the move to net cash, but emphasised lingering uncertainty around the end of the Ralph Lauren licence—an issue the market is seeking clarity on.
Investors should watch for any company announcements about the Ralph Lauren licence outcome, updates on international expansion or acquisition activity, future like‑for‑like sales trends and dividend statements, as these items were highlighted in the report and could influence the share price.
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