Australia's Sussan Group returns to profit in 2017
Australia's Sussan Group returned to growth in 2017, with its parent company ARJ Group Holdings reporting increases in both earnings and revenues 12 months ending July 2017.
Owned by Australian retail maven and businesswoman Naomi Milgrom, Sussan Group (the operator of women's fashion chains Sussan, Suzanne Grae and Sportsgirl), generated a 2.6% in revenues for the fiscal year, with net profit rising to $6.6 million from $2.7 million.
In 2016, sales 3% to $459 million while net profit plunged to $2.27 million compared with $36.1 million in 2015. Before currency differences, underlying profits fell to $12.7 million compared with $16.9 million in 2016, on the back of rising rental costs, said the company at the time.
The latest results highlight a dramatic return to growth for the group, who has been seeking a buyer for its three-brand fashion business since July.
Rumours have been circling around Premier Investment's Solomon Lew, but so far the retail honcho and Myer shareholder, has failed to show interest.
The Australian Financial Review reported the group's worth to be between $300 million and $400 million, while Milgrom is estimated to be worth some $625 million.
The strong results for Sussan Group come at a tumultuous time for Australian retail chains. Last month, iconic menswear and tailoring outfit Roger David announced the closure of all its stores by early 2019, after the family-owned business declared bankruptcy.
The company blamed the shift in retail toward an emphasis on e-commerce and the evolving consumer as two main reasons for its demise.
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