Specialty Fashion Group trims loss, says Rivers turnaround ‘on track’

Specialty Fashion Group has trimmed its full-year loss and expects its troubled Rivers stores to be profitable in fiscal 2017.

Rivers stores: The worst is behind us, says Specialty.

Rivers chain owner Specialty Fashion Group has narrowed its full-year loss as it refurbishes its bricks and mortar stores as well as focusing on online sales.

The group (SFH) trimmed its full-year loss attributable to members to $2.2 million in the year to June 30, compared with $4.5m in the previous corresponding period.

Specialty Fashion chief executive Gary Perlstein said the result was pleasing given a “difficult trading environment”.

He praised his team’s work over the year despite a “terrible” start to winter due to warm weather, saying the group had made progress on clearing inventories and cutting net debt.

“The Rivers turnaround is on track, and the worst is well behind us,” he said, adding that Rivers is expected to start trading profitably during fiscal 2017.

The City Chic brand opened 14 concessions in Myer stores through the year and is also expanding overseas, while growth in the Millers brand is expected to continue this financial year.

Revenue rose 4.4 per cent to $826.2m in the year, compared with $791.5m in the prior corresponding period.

Specialty Fashion declined to pay a dividend.