A “strong” second-half performance has rescued Best & Less Group’s bottom line after the company lost 10.8 per cent of its trading days to Covid restrictions during the first half of the trading year.
For the year to June 30, revenue fell 6.2 per cent to $622.2 million while tax-paid profit declined 12.6 per cent to $41.1 million.
Like-for-like sales fell 0.7 per cent, however online sales rose 15.6 per cent to $69.7 million – contributing 11.3 per cent of all sales.
Best & Less CEO Rodney Orrock said despite Covid-related store closures during the first half, the business has registered strong margins.
“As we move further into an uncertain economic environment, with rising interest rates and cost-of-living pressures placing families under an increasing financial strain, we expect an acceleration in the migration to value that is already underway.”
He advised the business would strengthen its vertical retail model and focus on improving its non-discretionary baby and kid’s segments to provide competitive prices.
To manage cost inflation in key commodities, the company has selectively increased prices in line with its product and pricing strategy. During the next financial year, the retailer is set to open 11 new stores.
