Rivers, Katies owner Specialty Fashion results 2017 reveal $8.39m loss

KATIES, Rivers and Miller owner Specialty Fashion says store closures and asset impairments have led to its annual loss nearly quadrupling to $8.4 million.

Shares in the troubled retail group plunged 23 per cent on Tuesday after news broke of the disastrous result, which have all but killed its chances of a potential $135 million takeover by Al Alfia Holdings, an investment company controlled by the Qatari royal family, hoped to revive its fortunes.

Heavy discounting and weak consumer spending hurt Specialty Fashion’s revenue, which fell 2.1 per cent to $808.9 million for the 12 months to June 30 with comparable sales down two per cent compared to a year ago.

Solid sales growth from Rivers and City Chic were offset by declines at Millers, Crossroads, Autograph and Katies, which were hurt by promotional activity.

The group closed its stand-alone City Chic stores in the United States, which its key brands including Millers and Katies have struggled to grow sales.

It will close more than 40 stores this year, most of them loss-making, and attempt to lure customers to nearby bricks and mortar stores and online stores…

Source: Rivers, Katies owner Specialty Fashion results 2017 reveal $8.39m loss