Weak sales lead Noni B to close stores

FASHION retailer Noni B has seen its half year profit slide three per cent, and plans to close seven stores in the next few months.

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FASHION retailer Noni B plans to close seven stores in the next few months after poor sales resulted in a three per cent slide in its half year net profit.

Noni B made a net profit of $1.89 million in the six months to December 31, down from $1.95 million a year earlier.

Chief executive David Kindl said the company continued to face difficult trading condition, with weak demand across all states and territories.

"The difficult trading conditions we reported at the annual general meeting in November continued during the remainder of the period, although sales improved slightly in December helped by additional promotions," he said.

Mr Kindl said the company planned to close seven underperforming stores in the second half of the year in response to declining sales.

He said further store closures were possible as it attempted to negotiate reduced rents on stores as leases expired.

Around 30 per cent of the retailer's store leases are due to expire by the end of 2014.

"Where satisfactory terms cannot be negotiated, the store will be closed," he said.

Mr Kindl said the women's fashion market remained challenging at the start of the second half of the financial year.

Shares in the company gained 5.5 cents to 66 cents.