Discount apparel retailer Best & Less Group (BLG) says trading conditions were “inconsistent” through the March and April months of the second half year.
In a trading update for the 19 weeks to May 14, sales were up 1.8 per cent to $221.9 million when compared to the previous corresponding period. Like-for-like sales were down 1.4 per cent while online sales fell 18.2 per cent.
Sales improved in the lead-up to Mother’s Day and have been consistent since, while BLG’s non-discretionary product lines are continuing to perform well.
BLG executive chair Jason Murray said consumer confidence has been at “historic lows” yet the business is “optimistic” for sales growth.
“We expect to see the benefits of lower product and shipping costs begin to flow through in the first half of the next financial year and we will remain focussed on tightly controlling our cost base to preserve profitability.”
He added the company now expects to deliver pro forma net profit of between $10 million and $12 million for the second half, assuming no material deterioration occurs during the May and June trading periods.
A further four new stores are due to open before the end of the calendar year.
- Further reading: Weak consumer demand dents Best & Less Group profits
