Pacific Brands shares soared 30% today as the company’s new strategy on concentrating on key brands started to pay off.
The company now expects better profits after a lift in sales due to a better performance by its Bonds and Sheridan lines.
The clothing group lifted full year earnings guidance of between $63 million and $65 million for the 2015 financial year, up from its previous guidance of $57.4 million to $63 million.
Sales grew 5.3% for the year to June 30. The key contributing factors are a strong performance of Bonds and Sheridan, and cost controls
Full year results are being released in August.
Pacific Brands appointed a new CEO last year and has been restructuring its business following poor sales. Late last year, it sold its shoe business and earlier sold its work wear division to Wesfarmers.
Its shares are up more than 30% to $0.425 in early trade today.