The rise of `athleisure' has helped the retailer behind Vans, Skechers and The Athlete's Foot smash half year profit records, and the company says the fashion trend is here to stay.
RCG Corporation more than doubled net profit to $16.1 million in the half year to December 27, and revenue quadrupled to $220 million.
Chief executive Hilton Brett said athleisure, or athletic apparel worn in non-athletic settings, is booming, driving strong sales growth in RCG's footwear businesses.
He says the activewear trend has not passed its peak, with premium brands shifting to a "clean sneaker look".
"Look at the performance of the results that you're seeing from the likes of Nike, Adidas and Skechers," he said.
"We don't think that this is a fad, we think it's a change as far as fashion is concerned."
RCG's massive profit growth was also driven by its recently acquired Accent Group, which owns the Platypus Shoes brand and distributes seven international brands including Vans, Skechers, Dr Martens and Timberland.
"The ongoing performance of the Accent business is unprecedented in the current retail climate, with over 25 per cent like-for-like growth over the last 12 months," Mr Brett said.
"That's on the back of double digit like-for-like growth in each of the two years before that."
RCG has extended its Skechers distribution agreement to 11 years, and plans to fast track its store rollout to capitalise on the brand's massive global expansion.
Mr Brett said Accent's momentum has continued through the key Christmas and January trading periods.
Among RCG's other operations, The Athlete's Foot chain lifted comparable sales by 4.3 per cent in the half year, and RCG Brands, which includes Saucony and CAT, recorded a 6.9 per cent lift on like-for-like sales.
The company has upgraded its full year guidance, and now expects pre-tax earnings of between $58 million and $60 million in 2015/16, up from its previous forecast of $55 million to $57 million.
RCG has also launched a sale of new shares to institutional investors to raise $50 million, which will be used to reduce debt and fund and a planned rollout of up to 40 stores.
RCG PROFIT KICKS UP A NOTCH
* Net profit of $16.1m, up from $5.6m
* Revenue of $219.7m, up from $49m
* Interim dividend up 0.5 cents to 2.5 cents
