Noni B Group Reveals 67.8 Percent Growth in Online Sales

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By Published On: August 31, 20180 Comments

Noni B Group has reported on another year of steady growth, but particularly interesting is a significant lift in its online sales.

Following on from its trading update last month, women’s clothing retailer Noni B Group has released its full financial results for the year ended 1 July 2018.

Total revenue is up 17.6 percent, reaching $372.4 million in comparison to FY2017’s $316.8 million. The Australian company’s steady growth of previous years has continued, with like-for-like sales up 4.5 percent.

Although the Group opened 50 new bricks-and-mortar stores across Australia, its online growth is especially notable. Online sales brought in $20 million, a 67.8 percent increase that means online now represents 5.8 percent of the Group’s sales. This growth is the outcome of “significant investment in the online team and systems”, a focus the company plans to continue in FY2019.

More generally, the Group performed especially well in the second half of FY2018, which Managing Director Scott Evans attributes to seasonal and holiday factors. “Noni B recorded its fourth consecutive year of like-for-like sales growth with a strong response to the Group’s winter categories,” he said, “particularly during the key weeks leading up to Mother’s Day.”

Trading update predictions about the Group’s financial results have proven accurate, with underlying EBITDA reaching the forecast $37.2 million – an increase of 62.7 percent from FY2017.

Continued growth seems likely for the Group, which acquired five key Specialty Fashion Group brands the day after FY2018 ended: Katies, Rivers, Autograph, Millers, and Crossroads.

“With the successful integration of the Pretty Girl Fashion Group over the past 22 months, the team at Noni B has created a successful and scalable retail business,” said Evans. “With the acquisition of the Specialty Fashion Group assets, Noni B Group has now become one of the pre-eminent women’s apparel retailers in Australia, whilst retaining our solid, focused market position.”

The newly acquired companies are not currently in a profitable state, but Chairman Richard Facioni cites “experience in turning around underperforming retail businesses and setting them on the path to sustainable, profitable growth” as a reason the Group is optimistic. “As foreshadowed the five brands have recently traded at a loss,” he said, “but we are confident we can address the business’ underlying issues. Early indications following completion of the acquisition are encouraging.”

With this expansion, and continued investment in digital and online growth, the Group looks forward to what it predicts will be “a year of transformation” in FY2019.

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