Chief executive officer
quick overview:
- Strong growth in sales and operating profit;
- new stores and concessions opened;
- significant capital expansion programme; and
- opened in Woolworths in South Africa.
2009 focus
market share
Continue to improve market share, driving competitiveness and delivering outstanding value to customers.
growth
Further invest in existing stores in Australasia and introduce new stores – five new stores will be opened in 2008-2009 and selected existing stores will be expanded. Expand in the South African market.
financial performance
Tightly manage overhead costs, improve efficiency of operations and maintain the quality of inventories to maximise opportunities and minimise risks.
Country Road
Country Road delivered a second consecutive year of strong growth in sales and operating profit. The repositioning of the brand continued, with improved fashionability at great value and without compromising quality.
Existing customers continued to respond strongly to the new ranges and new customers were attracted to the brand.
year in review
Sales grew strongly in 2008, significantly outperforming the market average in the clothing sector as published by the Australian Bureau of Statistics. Total sales were 22.2% up while stand-alone retail stores were 14.2% up on last year. Total sales growth benefited from the replacement of wholesale sales with retail sales in our concession outlets within department stores, Myer and David Jones, during the first half of 2008.
Country Road opened five new stores and upgraded four stores in the first half of 2008. In the concession outlets, 22 new outlets in David Jones and 10 in Myer were opened as new opportunities arose.
Country Road’s cash flow is strong and inventories are the cleanest they have been. Country Road funded a significant capital expansion programme and returns to shareholders from operating cash flow during the year. The strong financial position of the business enabled Country Road to renegotiate financing arrangements on an unsecured basis – the composition of facilities was negotiated and included reduced borrowing costs.