Parent company of The Athlete’s Foot (TAF), RCG, has announced another profit increase for the year ended 30 June 2013 – the seventh consecutive year.
Overall the company’s consolidated earnings before interest tax and depreciation lifted 12.6 per cent from $13.4 million to $15.1 million, while net profit after tax rose 10.4 per cent from $9.5 million to $10.5 million.
Its core retail business TAF was a key contributor to the company’s success, reporting like-for-like sale growth of 4.1 per cent for the year. Total group sales, after adjusting for an extra week in FY2012, increased 3.0 per cent to $205.1 million. On a 52 week likeâ€ÂÂfor like basis, TAF’s EBITDA grew 3 per cent.
RCG CEO Hilton Brett said given the challenging environment, the company is delighted with The Athlete’s Foot’s performance.
“TAF has repeatedly demonstrated its ability to thrive during tough market conditions and the business’s uncompromising focus on service and the customer experience sets our group apart from other players,” he said.
“As a consequence, the business has been able to maintain its position as a fullâ€ÂÂpriced retailer and has maintained its gross profit margins, even during a time of unprecedented price driven activity in its sector.
“This resilience will be an important factor in continuing to drive TAF forward in what appears to be a challenging outlook for retail in the new financial year.”
The company’s wholesale and distribution division, RCG Brands, also experienced another positive year. Total sales grew 35.1 per cent to $33.4 million and EBITDA improved 23.2 per cent to $5 million.
“This is an extraordinary result for a business which did not exist three and a half years ago,” Brett said.
Merrell continues to be the flagship brand in the RCGB stable, which opened four new stores in the year taking the total store footprint to eight. The company has also extended its Merrell distribution agreement until 31 December 2019.
“We are delighted to have extended the agreement on our flagship brand, Brett said. “This gives us the long term certainty to continue to invest in and grow the brand for many years to come.”
Going forward, RCG is targeting for a 10 per cent growth in its earnings per share for the 2014 financial year.