Australian fashion retailer Oroton has reported a 57% increase in year-on-year apparel sales for FY22.
Overall sales revenue grew 22% on the previous year to $97 million, with online sales up 31%.
Oroton CEO Jennifer Child said the result indicated its apparel strategy is working, under the guidance of creative director Sophie Holt.
"This result demonstrates strong early progress in our growth strategy as we strive to realise the full potential of our iconic Australian brand," Child said.
“Sophie Holt and our creative team are doing an outstanding job disrupting expectations of Oroton with a series of outstanding seasons that deliver the beauty, utility, and authenticity we want the brand to be known for.
“It’s clear our apparel strategy is working, both from a sales perspective but also in terms of adding relevance and resonance to the brand."
Operating profit for the year increased to $3.53 million from $93,000 in FY21, with net profit after tax reverting from its FY21 loss of $1.24 million to +$2.31 million in FY22.
Oroton’s cash position for FY22 also improved to $1.6m despite the repayment of $2 million of borrowings.
Earlier this year, the brand launched a new store concept in Paddington, NSW, with new locations in Karrinyup, WA and Mosman, NSW. Oroton also launched two pop-up stores in Claremont, WA and Fitzroy, VIC.
Inventory management has been tightened alongside this growth, with inventory dropping 5% to $19.7m from $20.8m in FY21.
“I am particularly delighted that we have delivered such strong revenue growth whilst simultaneously managing down inventory against a backdrop of COVID supply chain and demand uncertainties that have caused many retailers to struggle with inventory issues," Child said.
“Our customers are making ever more mindful fashion choices - buying less but better. At Oroton, we are designing for this, with a consistent brand ethos that ensures our designs are enduring from season to season and through partnerships like AirRobe where we’re encouraging the circular economy.”