Loss making fashion retailer Noni B says this Christmas will be a critical test for a turnaround that's showing early signs of success.
The company has made a loss in each of the past three financial years, and its founders, the Kindl family, handed control of Noni B to private equity group Alceon in 2014.
Positive signs seen in the second half of 2014/15 have continued into the current financial year, with like-for-like sales on the rise, chairman Richard Facioni told Noni B's annual general meeting on Tuesday.
But there remains plenty of work to be done, he said.
"While there has been a material improvement in the company's performance over the past few months, we still have a long way to go to improve our performance to an acceptable level," he said.
The impact of a falling Australian dollar is being closely monitored, and consumer sentiment is cautious at best, Mr Facioni said.
"As in previous years our results for the first half will depend on the critical Christmas period," he said.
"Notwithstanding these factors, over which we have limited or no control, we remain cautiously optimistic about the underlying operating performance of the business."
Since the change of control in late-2014, Noni B has closed 10 loss-making stores across the country and changed the way it sources and selects its womens fashion ranges.
Managing director Scott Evans said 12 new stores will have been opened by Christmas, each with a revamped look.
"While it will take time for all the improvements and efficiency gains we are making to be reflected in Noni B's financial results, I am encouraged by our customers' response so far and by the positive way in which our teams are embracing change," Mr Evans said.
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