Noni B’s online Xmas boost
In a trading update delivered prior to its full half-year result, on Tuesday morning the retailer said like-for-like sales for the six months ended 31 December increased by 3 per cent, with total sales growing to around $190 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the first-half of FY18 is now expected to be approximately $22 million, an increase of more than 50 per cent on 1H17’s $14.3 million EBITDA result.
While Noni B had flagged last November that FY18 earnings were $5.4 million higher than the same period last year in the lead up to Christmas, its new guidance nearly matches the $22.9 million it booked in full-year earnings in FY17.
On the back of Alceon Group – which owns nearly half the retailer – and its acquisition of online platform EziBuy from Woolworths last year Noni B, said that online sales have continued to grow, representing 4.9 per cent of total sales for the half.
Online shopping appears to have been particularly popular over the holidays, with Australia Post revealing last week that it is still being inundated by parcel deliveries after December.
Noni B’s online sales growth was up 84 per cent on the prior year leading into Christmas, with the company today saying that it was particularly pleased with holiday sales across the group.
There are now 642 stores in the company’s network, up from 614 stores at the start of FY18.
Noni B shares increased by 5.2 per cent to $2.00 by 10:30AM AEDT after the update.