Specialty Fashion lifts web profile
Chief executive Gary Perlstein said the company was committed to closing up to 120 of its stores over the next three years - it closed 47 in 2012-13 - as it recalibrates its business away from expensive leases in shopping centres in favour of higher-margin online sales.
Specialty Fashion had made large investments in its IT infrastructure and staff over the past two years to build its omni-channel platform, he said, as well as employing in-house design and sourcing teams that would protect margins in the face of cut-throat competition in the discretionary retail sector. "All the investments in IT and the online strategy, we won't see all the benefits we want for now but it's important to be made," Mr Perlstein said.
"We have embraced digitisation, we are making the investment not just for today but the future. There is a cost to be borne for that but when you're facing a change that is once-in-a-generation you have to ensure you don't crawl into a hole, but make those investments even if you can't see the return tomorrow."
Specialty Fashion unveiled a full-year net profit of $13 million despite choppy conditions marked by low consumer confidence and industry-wide discounting.
The retailer's burgeoning websites were again a standout performer within the group, with online sales up 50 per cent to $21.9 million, against $15 million the year before.
Its online sales now represent 3.8 per cent of total revenue. Stripping out its Millers chain, which appeals to an older demographic, its online sales made up 6 per cent of total group sales.
The retailer actually recorded a loss for the June half of $5 million, but strong momentum from the first half of fiscal 2013 helped push the company into profit territory. It posted a $2.8 million loss in 2011-12.
Revenue for the year was $569.5 million, down 0.5 per cent.
A final dividend of 2¢ per share was declared, taking the total payout for the year to 4¢ per share.
Frequently Asked Questions about this Article…
Specialty Fashion Group reported a full-year net profit of $13 million and revenue of $569.5 million, which was down 0.5% versus the prior year.
Online sales grew 50% year-on-year to $21.9 million, now representing 3.8% of total revenue (or about 6% of group sales when excluding the Millers chain). This shows the company's e‑commerce channel is a key growth area for investors to watch.
CEO Gary Perlstein said the group plans to close up to 120 stores over the next three years (it closed 47 in 2012–13) as it shifts away from expensive shopping-centre leases toward higher-margin online sales, a move intended to protect margins and improve long-term profitability.
The company has made large investments in IT infrastructure, staff, and an omni‑channel platform, plus in-house design and sourcing teams. Management expects these investments may not deliver immediate returns but are necessary to compete in a once‑in‑a‑generation retail shift.
Yes. The company declared a final dividend of 2 cents per share, taking the total payout for the year to 4 cents per share.
Yes. The retailer recorded a $5 million loss for the June half, but momentum from the first half of fiscal 2013 helped lift the company into a full-year profit; the prior year (2011–12) had a $2.8 million loss.
Millers appeals to an older demographic and dilutes the group's online mix: online sales represent 3.8% of total revenue across the group but rise to about 6% when Millers is excluded, indicating stronger online take-up among the other banners such as Katies.
Opportunities include rapid online sales growth and a strategic shift to higher‑margin omni‑channel retailing supported by IT and in‑house design investments. Risks include short‑term costs from store closures and digital investment, past half‑year losses, low consumer confidence, and industry-wide discounting that can pressure margins.
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