koro,I think you'll find it wasn't a matter of closing of...

koro,

I think you'll find it wasn't a matter of closing of unprofitable stores...the store count is essentially unchanged.

I.e., this update reflects not so much a Cost Of Doing Business (CoDB) gain as was a GP margin gain.

Specifically, GPM is up 477bp (no, it's not a typo), to an atonishing 62.4% due to supply chain gains, and also lower cotton prices and the A$ strenght are cited as the reason for the GPM uplift.

NPAT forecast for FY13 of $18m is treble consensus expectations (highest forecast is $11m)

I suspect the real CoDB gains will become manifest in subseqent financial periods, espcially in the form of further reductions in the base level for lease rentals.

I suspect that just as the last two years have been the perfect storm for this otherwise reasonable retailer (albeit at some times cavalier with concepts), the improved operating performance of the business might coincide with a return of a degree of consumer confidence sometime in the next two years.

Given the significant operating leverage in a business like this, such dual positive tailwinds would provide for explosive underlying earnings.