Retail Apparel Group, the owner of Tarocash, Connor, yd and Johhny Bigg, has posted strong earnings growth but warned its store rollout plans delayed by Covid-19

Retail Apparel Group, owner of fashion chains Tarocash and Rockwear, has boosted profits for 2022, but warned store rollouts will be delayed by Covid-19.

Retail Apparel Group, one of the nation’s largest fashion chain owners, has booked surging sales and profitability after putting the worst of pandemic lockdown restrictions behind it, but has warned rollout plans for its portfolio of men’s and women’s apparel stores will be delayed.

Owned by South African retail giant Foschini Group, Retail Apparel also said that despite the end of severe Covid-19 restrictions which included the shut down of its stores its sales were lower than budgeted for much of fiscal 2021 and 2022 as continued social distancing measures impacted trade.

Nonetheless, Retail Apparel, whose fashion chains include Tarocash, yd, Rockwear, Connor and Johnny Bigg, has posted a strong rebound in sales for the 12 months to March 27 of $628.4m, up 23.6 per cent from sales of $508.3m in 2021. Sales in 2021 fell 8 per cent. The company also harvested stronger profits, with annual net profit of $52.4m, up from $37.5m a year earlier.

It ended the financial year with a net cash position of $123.7m, up from $67m in 2021.

Foschini purchased the Retail Apparel for $302m in 2017, derailing what could have been a sharemarket float for the men’s and women’s fashion and apparel retailer. The company has 510 stores across its retail brands.

Like many retailers, it struggled through Covid-19 lockdowns from 2020, which have had some lingering impacts on its business even as those lockdowns have ended.

“Between 27 March 2020 and November 2021, various countrywide, statewide and localised lockdowns were in place in response to government advice regarding the Covid-19 global pandemic, meaning that all stores in Australia and New Zealand were temporarily closed at various times,” the Retail Apparel accounts report.

“During the various lockdowns, store sales were significantly reduced. Outside of lockdown periods, continuing social distancing measures impacted trade, and sales were lower than budgeted for much of fiscal 2021 and fiscal 2022.”

The director's report said that through 2022 and 2023 the retailer will continue to execute its strategy of rolling out new stores in Australia and New Zealand “albeit delayed as a result of the Covid-19 pandemic”.

The 2022 accounts show it didn’t receive any JobKeeper payments, compared with around $19.5m in JobKeeper support in 2021. Rent abatements or waivers of $4.3m were collected in 2022, down sharply from $12.6m in rent support a year earlier.

Originally published as Retail Apparel Group, the owner of Tarocash, Connor, yd and Johhny Bigg, has posted strong earnings growth but warned its store rollout plans delayed by Covid-19