RCG profit will be higher than expected
Australian footwear retailer RCG has confirmed that its full-year net profit will be at the upper end of its earlier guidance of AUD 8.4 million ($8.9 million) to AUD 8.8 million ($9.3 million).
RCG, which owns the Athlete’s Foot and Shoe Superstore chains, said it was confident of achieving “the upper end of our profit guidance”, which would represent a 30% increase on last year’s AUD 6.9 million ($7.3 million) net profit.
Full-year turnover for the group is expected to be AUD 15 million ($15.9 million), an increase of AUD 1 million ($1.06 million) more than it had previously estimated. The Athlete’s Foot brand recorded sales growth of 8.9% for the 10 months to April. Like-for-like sales growth was 5.9%.
The company expects the Athlete’s Foot brand to deliver sales growth of between 8% and 10%, as previously forecast. The company said its Shoe Superstore outlets performed well, with strong sales in the second half and like-for-like sales growth up 17% for the 10 months to April.
“We expect full-year like-for-like sales growth to meet the upper end of our 12% to 15% forecast,” the company said.
The key driver of the sales growth at its Athlete’s Foot brand was an upgrade of many shops to larger premises, which were able to offer a broader range of footwear. The brand opened two new stores, taking its total footprint to 147 shops, while Shoe Superstore opened one new store, taking its total to six.
Mr Wade said the company had growth opportunities, but it would face increasing competition from online retailers.
