PBG 0.00% $1.15 pacific brands limited

Don't understand, page-44

  1. 2,184 Posts.
    lightbulb Created with Sketch. 51
    Looking forward to dividends next year

    http://www.smh.com.au/business/reta...idas-with-new-activewear-20151027-gkjexj.html

    Bonds taking on Nike, adidas with new activewear
    Date
    October 27, 2015 - 7:48PM
    7 reading nowRead later
    Patrick Hatch
    Reporter for The Age
    View more articles from Patrick Hatch
    Follow Patrick on Twitter Follow Patrick on Google+ Email Patrick

    inShare
    submit to redditEmail articlePrint
    Pacific Brands chief executive David Bortolussi believes Bonds has an excellent opportunity to expand in the activewear market.
    Pacific Brands chief executive David Bortolussi believes Bonds has an excellent opportunity to expand in the activewear market. Photo: Pat Scala
    Bonds wants to take on global sports giants Nike and adidas in the increasingly lucrative "activewear" market with its own line of athletic clothing.
    Parent company Pacific Brands hopes to cash in on the trend of Australians wearing sports gear as everyday apparel and will launch a line of medium-performance women's activewear in mid-November.
    The range would go on sale at a new Bonds Sport concession store in Myer's flagship Melbourne outlet in Bourke Street, Pacific Brands chief executive David Bortolussi said at the company's annual general meeting on Tuesday, with concessions eventually being rolled out to all Myer stores.
    The new range was part of a broader strategy that Pacific Brands said would return it to profit growth and paying dividends to shareholders.
    Advertisement
    "Bonds has a terrific opportunity to grow in the activewear market at a more accessible price point than the global majors," Mr Bortolussi said.
    Bonds' sports leggings will sell for about $60, undercutting leading brands by about $40. It will then introduce a range of higher-performance products in February.
    Pacific Brands expects to generate about $10 million in sales from the Myer concessions, and the same amount from the Sheridan concessions in David Jones stores.
    Mr Bortolussi said activewear could grow to become a $20 million to $30 million market for Pacific Brands.
    Chairman Peter Bush told investors that 2015 – in which the company reported a $97.7 million bottom-line loss – was a turning point for Pacific Brands after major restructuring.
    Mr Bush, who was re-elected at Tuesday's meeting, said the company was positioned to return to profit growth and expected to pay shareholders dividends in the first half of 2016.
    Mr Bortolussi said sales across the stable of brands were up 7 per cent in the first 16 weeks of the new financial year, compared with last year.
    He expected earnings before interest and tax to be up on last year's $64.2 million.
    "We're off to a good start this year and I'm confident that we have the right strategy to deliver growth and dividends," he said.
    December and January sales will largely determine Pacific Brands' 2016 first-half results.
    Mr Bortolussi said consumer sentiment was "pretty good" moving into the key trading months.
    "There's no reason for Christmas not to be strong this year," he said.
    The company would have to battle foreign currency headwinds that were hurting future earnings, Mr Bortolussi said, but added that plans were in place to mitigate the impact of the weak dollar through "a combination of sourcing benefits, mix improvement, [cost of doing business] reduction and price increases".
    The company last year offloaded well-known labels including King Gee, Volley and Dunlop for $220 million to focus on Bonds and Sheridan.
    Those brands generate 45 per cent and 24 per cent of the company's sales, which are increasingly coming from their own retail stores.
    Bonds' same-store retail sales grew 20 per cent last year and Sheridan's jumped 13 per cent.


    Read more: http://www.smh.com.au/business/reta...activewear-20151027-gkjexj.html#ixzz3plXSCTE5
    Follow us: @SMH on Twitter | sydneymorningherald on Facebook
 
watchlist Created with Sketch. Add PBG (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.