Noni B reports a Merry Christmas
The AFR noted that women's fashion retail group Noni B has reported that after acquiring Katies, Crossroads, Autograph, Rivers, and Millers in 2018 sales were up 140%. Like-for-like sales increased 1% in December, but the total first half-year like-for-like sales were down 3.1%. Substantial cost reductions were also reported. We remain cautious in our assessment as the true test after an acquisition comes in year two and three, when the retailer must switch to the business-as-usual model. Continuing cost cuts could also have a detrimental effect, and apparently more are planned.