Australian luxury retailer Oroton has doubled its operating profit from FY22 to $7.4 million in FY23.
In the same period, the retailer’s net profit after tax (NPAT) grew by over 70%, from $2.31 million to $8.2 million in FY23.
Oroton also recorded continued revenue growth momentum, up 18% to $114 million, with basket size up 11%, and average price per item sold up 20%.
The retailer’s online sales grew 3.4% for FY23 following a 31% growth recorded in FY22, while overall store sales grew 25% and same-store sales grew 12%. According to Oroton, store sales growth was accelerated by in-store investment, increased trading days, and a shift back to physical retail post-COVID.
Oroton CEO Jennifer Child said the strong growth across sales came from progress in product and pricing discipline, and investment in technology, data and personalisation. This includes being the first Australian fashion brand to launch augmented reality (AR) storefront window displays.
“Our customers are responding well to our revamped digital channels and quicker and more reliable fulfilment, along with more targeted and relevant content and communication,” Child said.
“We continued to refine our retail footprint with a ‘right store, optimal catchment’ approach as we delight our customers with an amazing in-store experience and help them make the most of Oroton with styling inspiration from our store teams.”
During the year, Oroton further shifted its sustainable fabric choices including plant-based leathers, which the company noted resonated with customers. It has also struck partnerships with rental platforms Rntr and Trading in Style.
“Oroton customers prize quality over quantity and they are increasingly conscious of their impact on the world,” Child said. “We see huge potential value in offering customers new ways to rent, re-use and re-sell Oroton apparel and accessories to extend their life and enjoy more variety with less environmental impact.”
Looking ahead, Oroton expects to successfully navigate the challenging economic environment. Child said her team will continue to focus on the long-term.
“Overall, our execution is getting better each year, and we have built a very strong platform for scale,” Child said.
“There will also be no change to our determination to invest in our brand and retail fundamentals while driving increased relevance to the occasions our customer buy for, including an enhanced focus on gifting.”
During FY23, Oroton opened new stores, with two in Sydney and one in Perth, as well as a pop-up store in the Melbourne International Airport.
“Great things happen in fashion when you combine brands customers adore with collections that inspire them,” Child said. “Sophie Holt and our creative team consistently create apparel and accessories that are simultaneously relevant and timeless.”