Country Road Group’s profit sinks as parent | Australian Markets
The parent company of Country Road Group warns that discretionary spending will possible stay constrained within the close to future as the beleaguered fashion home posts a loss for the 2025 financial 12 months.
The group’s South Africa-based parent company, Woolworths Holdings, informed the Johannesburg Stock Exchange on Wednesday that CRG reported a pre-interest and tax loss of $18.1 million for the 12 months ended June 29.
This in contrast with the $51.3m profit reported in 2024.
The profit stoop got here amid sinking gross sales for CRG, which is behind the eponymous fashion label, as properly as Mimco, Politix, Trenery and Witchery.
Sales for the 2025 financial 12 months fell by 5.4 per cent and by 6.8 per cent on a comparable-store foundation. Total turnover additionally fell 5.4 per cent to only over $1b.
It has been a tumultuous period for CRG after the exit of a number of senior managers throughout its manufacturers final 12 months amid controversy about how sexual harassment and bullying complaints have been dealt with by executives.
It has additionally shut a quantity of its Sydney shops in a bid to cut prices as gross sales plumet.
Earlier this 12 months, Woolworths Holdings mentioned CRG was present process a “significant restructure of its operating model” and resetting as a standalone business following the cut up from division store David Jones, which was offered to Anchorage Capital in 2022.
Woolworths Holdings on Wednesday mentioned the transformation was undertaken in an accelerated timeframe and within a significantly unconducive macro backdrop, whereby sustained strain from high rates of interest and dwelling prices continued to impression shopper footfall and spend. This resulted within the gross sales stoop.
But Woolworths Holdings mentioned CRG had seen some enhancements within the fourth quarter, with trade efficiency declining by a lesser 0.3 per cent on the prior comparable period.
“Notwithstanding easing inflation and recent interest rate cuts, business and consumer confidence across both geographies remains subdued, with discretionary spend likely to remain constrained for the foreseeable future,” it mentioned.
The Country Road and Trenery manufacturers have continued to trade forward of the remaining of the CRG manufacturers, the parent company mentioned.
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