profits

Noni B predicts 26% profit rise, thanks to new stores




WOMEN'S clothing retailer Noni B expects full-year net profit will be up as much as 26 per cent, boosted by a string of new store openings and margin improvements.

In its first detailed guidance for the 2005-06 financial year, Noni B said it expected to report profit after tax of between $7.9 million and $8.3 million, up from an adjusted $6.6 million the previous year.

Noni B reported unadjusted sales of $115.7 million for the 2005-06 financial year after $107.3 million a year earlier.

"The market's not perfect … however, our position in it is better than others," Noni B director David Kindl said, adding that "heavy discounting" by competitors early in the sales period in June had "weakened sales".

"The rest of the market is mixed - we've got tax cuts coming up but we've got petrol prices and interest rates. The customer that we're focused on, the baby boomer, is quite resilient."

Mr Kindl said the company would continue to grow through new store openings and there was "not much out there in the way of acquisitions".

Noni B opened 13 stores during the year and will open another eight before Christmas. "There's a lot of new store growth, a lot of opportunities out there," he said.

Profit growth had been driven by margin improvement from strong stock control and less discounting as well as the opening of new stores, Mr Kindl said. He declined to comment on same store sales performance.

First-half net profit was $5.5 million, implying second-half net profit grew 28 per cent on the previous year.

Michael Evans