Oroton smashes half year profits after ditching Brooks Brothers

An Oroton bag. Lisa Maree Williams/Getty Images

Oroton posted a 73% rise in half year profit to $3.8 million as it concentrates on its own luxury brand after ditching Brooks Brothers.

Revenue was up 12% to $74.5 million as the retailer re-establishes its brand in the luxury end of the market, smartening up its stores and ending heavy discounting.

Oroton shares were up more than 15% to $2.37 in early trade.

The company has sharpened focus on its core Oroton brand as an affordable luxury offering and accelerated the trading performance and margins of the Gap brand.

Oroton dropped the loss making Brooks Brothers joint venture with the US company in July last year.

CEO Mark Newman says like-for-like sales growth of 10% was driven by both the Oroton and GAP brands.

“This positive performance is confirmation that the investments in our new (Oroton) store concept, increased average selling prices, limited edition products and new categories is resonating with our customers,” he says.

The company declared an interim fully franked dividend of 6 cents per share, up from 4.5 cents.

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