Cotton On continues surge into overseas markets

The Australian fashion staple opened more than 100 new international stores in the 2023 financial year.

Cotton On, one of the country’s largest fashion retailers, has continued its relentless expansion overseas, opening more than 100 new stores outside Australia in the 2023 financial year.

The private group, majority owned and run by Geelong billionaire Nigel Austin, achieved record sales in the year to June 25 of $2.2bn, according to documents lodged with the corporate regulator overnight.

That revenue result was up 4 per cent compared to last year, but higher materials costs, wages, rent and finance expenses, as well as a bigger depreciation of its assets on the Cotton On balance sheet, saw its statutory net profit dive.

Cotton On is a staple of Australian fashion. Picture: Brad Fleet

Profit after tax was only $5.9m, according to the financial accounts lodged by parent company Cogi Pty Ltd, compared with a $114m result a year earlier.

But earnings before interest, tax, depreciation and amortisation — a widely used measure of a private company’s financial performance — was $454m, showing just how big Cotton On is.

Australia remains the largest region within the group, comprising 52 per cent of total sales. Sales growth in Australia was up $53m to $1.2bn.

North America accounts for about $401m in retail and wholesale sales, Asia almost $275m and Africa $183m.

“During the year, over 100 stores were opened outside of Australia, increasing our offshore retail footprint by 15 per cent,” a note in the Cogi accounts said.

“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.

“International expansion remains a key strategic priority for the group, in line with our vision to take Aussie lifestyle brands to the world.”

Cotton On sells casual dresses, T-shirts, jackets, jumpers, activewear, underwear, shoes and accessories in more than 600 stores across Australia.

It also owns accessories and footwear brand Rubi, stationery chain Typo and youth fashion business Factorie.

Austin started his career aged 18 by selling denim jackets from the boot of a Ford Bronco at the Beckley Market in his hometown. Cotton On has since become a ubiquitous presence in shopping malls and high streets.

The success of Cotton On means Mr Austin is a prominent member of The List – Australia’s Richest 250. His wealth was estimated at $2.66bn when 2023 figures were published in March.