The OrotonGroup posted a 31% rise in full year profit to $3.44 million as it concentrates on its own luxury brand and its Gap franchise after ditching Brooks Brothers.
A short time ago, OrotonGroup shares were up 2% to $2.35.
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.
“As we concluded the second year of transformational change, it is pleasing to see the group return to a period of stability and growth in earnings,” says CEO Mark Newman.
Revenue increased 3% to $136.4 million with like-for-like sales up 2%.
The Oroton.com online store growth accelerated in 2016 and now represents 12% of total sales.
Sales at Gap were up 6%.
A final fully franked dividend of 3 cents per share, up 50% on 2015, was declared.
“Our strategy for the year ahead remains centred on strengthening the Group with further development and growth in the core Oroton brand and eliminating losses from the international channel,” says Newman.
He says sales in the first seven weeks of 2017 have been encouraging.
The 2016 results in detail: