Thursday, February 24, 2011
RCG Corporation buck the trend
RCG Corporation owns The Athlete's Foot and Shoe Superstore chains. The corporation have bucked the gloomy retail trend with a 35.1 per cent rise in first-half net profit to $3.9 million. Further RCG says it is on track to report a full-year net profit of between $8.4m and $8.8m, with indications it would deliver at the top end of the range. The Athlete's Foot, has 145 stores across Australia and NZ, and reported a total sales growth of 9.7 per cent to $88.7m for the first half, with like-for-like growth up 6.1 per cent. January has been an exceptionally strong month, with like-for-like sales up 10.7 per cent, this is according to experts due children returning to school. RCG's comfort footwear business, Shoe Superstore also increased total sales by 23 per cent to $2.3m, with like-for-like sales growth of 18 per cent. Its wholesale division, RCG brands, which distributes the Merrell brand of outdoor footwear and apparel, reported sales of $7.7m for first half in its first year of operation. It has also taken on the distribution of two new footwear brands in Australia, Chaco and Cushe. The company is finalising a licence agreement to distribute another brand soon.