Cotton On reports record revenue as international strategy sees 100 stores open overseas

New documents show the retailer continues to grow rapidly, resulting in handsome rewards for its reclusive owner.

Cotton On founder and majority owner Nigel Austin.

Geelong-based retailer Cotton On is reporting another record result, with sales in the past 12 months surpassing $2.2bn, resulting in a bumper payday for majority owner Nigel Austin.

As founder and one of only two directors of parent company Cogi Pty Ltd, Mr Austin would receive most of the $56.6m paid in dividends during the period.

Documents filed on Tuesday with the Australian Securities and Investments Commission revealed more than half of the group’s sales ($1.2bn) were in Australia despite a continued push by the company into international markets.

North America was the next largest market, followed by Asia and Africa.

Total sales of $2.21bn represented a 4 per cent increase.

In a summary that preceded the financial statement, Mr Austin said the group, which has its headquarters in North Geelong, had opened more than 100 international stores in the 12 months to June 25.

“Further investment was also made in enhancing global distribution capacity, with new state of the art facilities designed and constructed in Australia, Africa, Singapore, UK and USA,” he said.

Mr Austin said international expansion remained a key strategic priority.

The documents also confirmed Geelong Advertiser reports the group would be split into two business units.

The Cotton On business unit would include Cotton On, Kids, Body and Rubi, while the new Emerging Brands unit would include Factorie, Typo, Supre and Ceres Life.

“To further support the future growth strategy, during the year the group commenced work to design and implement a revised operating model with the objective of empowering our leaders to make faster, frictionless decisions for our customer,” Mr Austin said.

After-tax profit of $5.9m was down considerably from the previous period due to higher costs and depreciation of assets.

Across all its operations, the group has more than 17,000 employees.

The Cotton On brand started out with Mr Austin selling denim jackets at Norlane’s Beckley Markets in the late 1980s.

After opening its first store in 1991, the brand expanded internationally in 2006.

Now operating in more than 20 countries, a new flagship store was launched at Westfield Geelong in early 2023.

In 2021, Mr Austin personally purchased two Hyland St properties in Fyansford for $7.2m.

The sites will ultimately become the commercial hub of the fast-growing suburb and are a key element of the Gen Fyansford housing development.

Mr Austin recently declined to disclose how his plans for the properties were progressing.

Mr Austin’s wealth was estimated at $2.66bn by The Australian’s rich list, published in March this year.

Originally published as Cotton On reports record revenue as international strategy sees 100 stores open overseas