Shares in Specialty Fashion, which runs a string of stores including Katies and City Chic, are soaring after the business posted a 50.6% rise in half year profit to $8.81 million.
Overall revenue was up 5.2% to $434.3 million and comparable stores sales growth was 5.7%.
A short time ago, Specialty Fashion shares were up more than 28% to $0.670.
The Rivers stores, a warehouse-style clothing retailer which has been a drag on results since Specialty Fashion bought the business in 2013, recorded a loss of $11.2 million.
“The improved performance by Rivers during this half is extremely encouraging,” says CEO Gary Perlstein. “We are on track with the transformation of this iconic brand. There is hard work still to go, but the worst is now behind us.”
He is confident Rivers will start trading profitability during in the 2017 financial year.
The group’s online sales are up 58.9% to $39.1 million and now represent 9% of total revenue.
“It’s clear customer enthusiasm for online shopping continues to grow across all demographics,” Perlstein says.
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