By Rebekah Ison
SYDNEY, Aug 28 AAP - The fashion retailer behind the Review and Yarra Trail labels expects a significant boost to profits this year after weathering a "perfect storm".
Newly listed retailer The PAS Group made a $12.97 million net profit in 2013/14, up 56 per cent on the year before.
The opening of 40 stores and new distribution deals with brands, including Slazenger, Everlast and DKNY Menswear, are expected to lift this year's net profit to $17.7 million.
Those new stores are expected to offset any weakness in comparative sales growth.
Chief executive Eric Morris said the May federal budget and unseasonable warm weather in autum and early winter had hit sales in the fourth quarter of 2013/14.
"It created the perfect storm for retailers because we had the warmer start to winter coupled with the federal budget which didn't help consumer sentiment," he said.
He said if there was a repeat of those warm weather conditions next year, PAS would try to ensure its stores were well-stocked with trans-seasonal clothes.
Women's fashion label Review was the company's strongest performing business.
But Mr Morris said brands with an older target market, such as Breakaway and Black Pepper, had large growth potential.
Pas Group's net profit result for 2013/14 was boosted by a number of one-off significant items including a $7.6 million tax benefit.
Its underlying profit rose by 0.6 per cent to $16.8 million, which just beat the $16.6 million forecast made in its prospectus ahead of its June stock market listing.
Pas Group shares were two cents lower at $1.08 at 1513 AEST.
PAS GROUP FLAGS PROFIT BOOST
* Revenue of $245.5 m, up 5.6 pct from $232.4 in 2012/13
* Net profit of $12.97m, up 55.7 pct from $8.3m.
* No dividend declared
AAP ri/gfr
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