Athlete’s Foot Races To Profit Despite Crisis
The owner of the Athlete’s Foot chain of sports shoe stores, RCG Corporation, expects further growth after increasing annual profit and acquiring two new footwear brands.
The company reported a 7.4 per cent lift in net profit to $5.3million in the year ended June 28, compared with the previous year.
Revenue fell 7.1 per cent to $21.997m from $23.666m last year. RCG says profit grew on the back of the “exceptional sales performance” of the Athlete’s Foot network, which recorded total sales growth of 15 per cent to $166.7m, and like-for-like stores sales growth of 11 per cent.
Chairman Ivan Hammerschlag said the downturn had not affected the company due to its personal service business model.
The company said sales from the Athlete’s Foot’s four converted stores had exceeded all expectations, with like-for-like sales increases for each store in excess of 30 per cent.
Mr Hammerschlag said the outlook for the business was hopeful despite economic uncertainty. The current financial year had started positively, with like-for-like sales up 6.5 per cent for the first seven weeks.
“We’re still quite positive, but the mystery is unemployment — that will have some effect,” Mr Hammerschlag said.
RCG announced the acquisition of two “highly synergistic” businesses. The company has won the Australian rights to distribute the Merrell brand of outdoor, comfort, active lifestyle, performance footwear and apparel under an agreement with Wolverine World Wide, Merrell’s owner.
