Country Road doubles interim profit

Fashion retailer Country Road has more than doubled its half year profit following its acquisition of clothing and accessories brands, Witchery and Mimco.

The company on Thursday posted a net profit of $22.1 million for the six months to December 31, up from $10.5 million in the previous corresponding period.

Total revenues jumped 50.5 per cent to $334.1 million.

The company bought the Witchery Group, which includes fashion retailer Witchery Australia and accessories designer Mimco, for $180.85 million last October.

Comparable store sales in Australia rose 10.7 per cent.

Country Road said it hoped to maintain its 10.7 per cent growth in comparable store sales in the second of the year.

But chief executive Iain Nairn said the market segments in which Country Road operates remained highly competitive and he was cautious about future growth prospects.

"We are encouraged by our recent trading performance but we remain cautious given the continuing volatility in consumer confidence, new market entrants and ongoing global economic uncertainty," he said.

"We will continue to prioritise the focus on growing our brands and customers as well as optimising costs and inventory levels."

Given the recent acquisition of Witchery Group and subsequent integration program, Country Road will not pay shareholders an interim dividend.

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