Country Road Group has increased its gross profit margin of 400 basis points to 63.5% in the first half of FY23, according to parent company Woolworths Holdings Limited (WHL), which cited strong full-price sales and reduced promotional activity for the growth.
WHL said this is notwithstanding higher supply chain costs.
Country Road Group sales grew by 25.5% and by 26.6% on a comparable store basis. WHL highlighted performances from the Country Road, Politix and Witchery brands for this drive in sales.
For the last six weeks of trade, Country Road Group reported sales growth of 8.5% compared to prior corresponding period.
It also saw a space reduction of 5.5% during the period, with online sales contributing 26.1% to total sales, compared to 33.8% for the prior period.
Country Road Group expenses increased by 22% on the lockdown-impacted prior period base. Adjusted operating profit increased by 94.2% to $93.2 million, returning an operating profit margin of 15%, compared to 9.7% in the prior period.