Country Road Group Returns to Profit on Disciplined Inventory Management

Country Road Group posted an operating profit of $2.3 million for the year ended June 28, rebounding from a loss in the prior year. Earnings before interest and tax climbed 113 per cent as the Australian apparel group trimmed inventory by 14 per cent and curbed promotional discounting.

Total sales edged up 1 per cent across the portfolio, while comparable sales rose 1.5 per cent. Gross profit increased 3 per cent over the twelve-month period.

Brand splits and inventory cuts

Repositioning efforts drove the bulk of the gains across the group’s standalone menswear and womenswear banners. Witchery recorded comparable sales growth of 9.5 per cent, and Politix delivered a 10.2 per cent increase in comparable sales.

Stock levels dropped 14 per cent as management focused on inventory turnover rather than clearance sales to support margins. Chief executive Steven Cook said the retailer focused on tighter cost control and establishing clearer product positioning across individual labels to support sustainable expansion.

Fashion groups across the region have spent the past year paring back stock purchases to protect margins against sluggish discretionary spending, swapping aggressive discounting cycles for smaller, targeted product drops.

Leadership shifts into FY27

Flagship brand Country Road recorded sales improvements in the second half of the financial year following management adjustments. Trenery tightened its product assortments, while accessories brand Mimco began initial restructuring for its next operational phase.

The group enters the 2027 financial year tracking whether the reconstituted leadership team at the Country Road banner can sustain full-price sales momentum in a cautious retail market.