Online drives growth at PAS Group
Apparel retailer, PAS Group, reported a 7.3 per cent increase in retail sales to $71.9 million driven by new stores that opened during FY2016 and a 39 per cent rise in online sales.
The company posted a 4.6 per cent increase in sales for the half year ending December 31, 2016 to $135.7 million compared to the previous corresponding period.
The group’s wholesale sales were up 1.6 per cent to $63.7 million driven by growth in JETS swimwear and the Designworks Sports Division.
EBITDA fell 5.1 per cent on the first half to $11.6 million. Investment in retail infrastructure, new stores opening in FY 2016 and investment in JETS growth resulted in an incremental increase in costs.
“Trading conditions in the first half were very challenging with a late start to spring and summer, significant promotional activity across the industry, weaker department store sales and overall subdued consumer confidence,” said Eric Morris, PAS Group CEO.
“Considering the environment, the group showed solid progress serving our existing customer base and reaching new shoppers demonstrated by continued expansion of our loyalty program across all brands and strong online sales growth in the first half of the year,” Morris said.
The group declared an interim dividend of 2.6 cents per share payable on April 7, 2017.
Morris said for the second half, the company will continue to focus on growing online sales and loyalty programs.
This story first appeared on sister site, Inside Retail Australia.