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Strong digital sales throughout FY20 and a sharp increase in the final quarter, helped Accent Group maintain sales and profit momentum despite the impact of hundreds of stores being closed for more than a month in Australia and New Zealand.

The footwear giant posted a 1.5 per cent increase in underlying sales to $948.9 million in FY20, and a 7.5 per cent increase in underlying net profit after tax to $58 million, thanks to a significant increase in online sales in the year and a bigger contribution from higher-margin in-house products.

EBITDA increased 11.8 per cent to $121.7 million, and EBIT was $87.2 million, up 8.2 per cent. These figures do not include the impact of the new lease accounting standard to enable a more accurate comparison with the prior year.

Accent Group’s positioning in the booming fitness and athleisure categories during the Covid-19 lockdowns via The Athlete’s Foot and Stylerunner, the pureplay fashion business it acquired in FY20, also bolstered its results amid incredibly subdued consumer sentiment.

The company’s chief executive Daniel Agostinelli credited team members, customers, landlords and suppliers for the strong performance.

“The outstanding efforts of our team who have adapted quickly to a fast-changing environment, along with the support of our loyal customers, landlords, and supplier partners, have delivered another strong financial result,” he said in an ASX statement on Thursday.

Digital growth key to result

Key to this result was the group’s quick pivot to e-commerce when the board decided to close all stores to the public at the end of March, according to Agostinelli.

Accent Group, owns and operates over 420 shoe stores in Australia and New Zealand across several retail chains, including Platypus, HypeDC, The Athlete’s Foot, Subtype, The Trybe and most recently Pivot, as well as distributing popular footwear brands, including Skechers, Vans and Dr Martens.

Shortly after deciding to close stores to the public, the company transitioned its entire physical retail network to “dark stores” to support the delivery of online orders from customers shopping at home.

Digital sales grew to $65 million, or 35 per cent of total retail sales, in the fourth quarter alone, a 142 per cent increase on the prior year.

Most of the people shopping online with the Accent Group were new customers, and the momentum increased even after stores started to reopen in May.

The company reported that online orders grew from an average of $200,000 per day in April to between $800-000 to $1 million per day in June. And it had its biggest month of digital sales ever in May, with $29 million. Agostinelli earlier this year referred to a “seismic” shift towards e-commerce.

In FY20 overall, digital sales were up 69 per cent on the prior corresponding period, representing 17 per per cent of total sales.

While group sales fell $55.7 million March and April, leading the management to temporarily reduce their remuneration by 80 per cent, the company said sales recovered “strongly” in May and June, driven by the digital performance.

All stores reopened in May, although some stores in New Zealand and Melbourne recently shut again due to a second round of lockdowns.

Unlike the first lockdown when the company stood down staff due to the store closures, all staff remain stood up. Accent Group has received wage subsidies from the Australian and New Zealand governments, which it used to return all permanent ANZ staff to full employment across May and June.

The group opened 57 new stores in FY20 and closed 12 where required rent outcomes could not be achieved. Agreements on rent reductions have been reached with the vast majority of landlords covering the period from April to December 2020.

Targeting 30 per cent penetration

Looking ahead, the company said it has experienced a strong start to the year across the business, including its wholesale division, where Skechers, Vans and Dr Martens all had record sell-ins for the second half of FY21.

Growth opportunities include the new Pivot concept, which offers a mix of sports apparel, equipment and accessories and has potential to reach up to 100 stores. The first store recently opened in Shellharbour, NSW, and is trading ahead of expectations, as is the Stylerunner business, which Accent Group acquired in November 2019, after it collapsed into administration.

The popular online retailer is set to open its first bricks-and-mortar store in the Melbourne suburb of Armadale this quarter, with an additional five stores to open in the second half of FY21. There are also plans for Stylerunner to develop an in-house range of athleisure, part of Accent Group’s focus on growing its “verticals” business, which currently includes in-house products across shoe care, socks and accessories.

The biggest growth driver, however, remains digital, and Accent Group is targeting 30 per cent e-commerce penetration in future.

To get there, it will continue to invest in the online shopping experience and digital marketing initiatives and roll out a new virtual sales team who will sell directly to customers from dedicated showrooms and stores via video and chat.

There are also plans to launch new e-commerce sites for Pivot, Hype DC in New Zealand, Dr Martens in New Zealand and Subtype in New Zealand, and new loyalty programs for Skechers and Platypus.

“The management team remains focused on driving digital growth and continued innovation,” Agostinelli concluded.

For the first time, Adore Beauty has a CEO who was not involved in starting the business 20 years ago.

Tennealle O’Shannessy has taken on the top job at the fast-growing online retailer from Seek, where she was previously managing director of the Americas.

She has replaced James Height, one of the co-founders of Adore Beauty along with Kate Morris, who served as CEO for the past 2.5 years.

Morris, the face of the business, was CEO for most of the company’s history, before handing the baton to Height and transitioning into the role of executive director in January 2018.

Both Height and Morris will now serve as executive directors, though Morris will continue to be the face of the business.

“We are thrilled to welcome Tennealle to the Adore Beauty team,” Morris said in a statement about the appointment.

In addition to O’Shannessy’s expertise in business operations, strategy, leadership and business transformation, Morris said her values-led approach was an important factor in the hiring decision.

“We felt that Tennealle clearly shared our values and would absolutely be the right person to come onboard as our new CEO. I am looking forward to working closely with her,” she said.

Morris and Height have worked with Tennealle for the past few months to ensure a smooth transition.

“Having built this business from the ground up over a 20-year period, our commitment to supporting the future success of Adore Beauty is unwavering,” Height said.

The appointment comes nearly one year after the co-founders sold a 60 per cent stake in the company to Quadrant Private Equity to accelerate Adore Beauty’s growth in the booming cosmetics sector.

Justin Ryan, managing partner at Quadrant and chairman at Adore Beauty, said O’Shannessy “adds further strength” to the leadership team and enhances its “capability to deliver the company’s future growth potential”.

For her part, O’Shannessy said the company is “well placed for is next phase of growth” and is excited to be part of the journey.

“I have admired Adore Beauty as a disruptive digital business and have been impressed by Kate and James’ focus on values, execution and continuous innovation,” she said.

“They have built an incredible business that implicitly understands their customers’ needs in a unique and personal way.”

Benefiting from the surge in purchases in homewares by Australians redecorating their homes during lockdown, Adairs saw group sales grow 12.9 per cent to $388.9 million during FY20 leading to a net profit of $35.2 million – up almost 16 per cent.

Online sales also grew 111 per cent to $124.2 million, and made up 32 per cent of total sales compared to 17 per cent a year ago.

“Despite the challenges and uncertainties placed on our industry and the broader economy by the Covid-19 pandemic I am pleased to report that FY20 was a good year for Adairs,” chief executive Mark Ronan said.

“Our CODB [up 1.8 per cent] benefitted from the receipt of Government subsidies, including JobKeeper, which have contributed materially to maintaining the employment of many of our team members.

“The government subsidies were helpful to our results, [though] it was clear that the company was performing well leading into this difficult period and would have delivered strong results had Adairs not been eligible for the subsidies.”

Adairs received $11.29 million in subsidies during the 52 weeks to 28 June, 2020. 

And while the Australian dollar fell slightly during the pandemic, the business’ underlying gross margin increase of 226 basis points more than made up the difference. 

This was attributed to a coordinated program of sourcing and retail pricing initiatives, combined with a focus on reduced depth and length of promotional activities.

However, Adairs is unwilling to commit to financial guidance for the coming year despite the fact it expects the increased focus on home renovation to persist while the pandemic remains due to the uncertainty in the market.

“We remain cautious about the next 12 months in light of the ongoing uncertain impact of Covid-19 on our industry in relation to severity and duration,” Ronan said. 

“FY20 showed that our business environment can change rapidly, however it also showed that the Adairs and Mocha teams can move quickly as circumstances require and that our omnichannel model gives us a competitive advantage in all markets.”

Total system sales rose 7.6 per cent to $8.23 billion over the year ending June (up 7.2 per cent on a same-store basis, excluding store closures). Company-owned store sales were up 3.7 per cent to $2.07 billion and franchisee sales rose 8.9 per cent to $6.16 billion.

The strong sales growth flowed through to profits, with earnings before interest and tax, (pre changes to lease accounting standard AASB16) rising 22.9 per cent to $654.8 million, beating consensus forecasts of $644 million.

The result included $22.3 million in wage subsidies overseas and subsidies of $7.6 million for Australian franchisees as well as $9.8 million in landlord support including rent abatements.

The Iconic has launched a new website called The Iconic Outlet, where an assortment of men’s, women’s and kids’ fashion and sport products are available at steep discounts.

Savings start at 50 per cent off or more, with some tops priced as low as $10 and shoes as low as $15 in a special launch offer.

Brands include popular Australian fashion labels, such as Mossman, Rolla’s, Talulah, Bec + Bridge, Shona Joy, Finders Keepers, Rolla’s, Outland Denim and Cotton On, as well as major international names like Calvin Klein, Tommy Hilfiger, Boohoo, Topshop and Adidas, and The Iconic’s private label brand Atmos & Here.

More brands, categories and tech features are slated to launch in the coming months.

“[I]t’s outlet shopping unlike we’ve ever known here in Australia and New Zealand,” Erica Berchtold, The Iconic CEO, said in a statement about the launch.

While The Iconic Outlet will operate as a separate site, it will offer the same fast delivery options and seamless customer experience as the main platform. It will also allow shoppers to use the retailer’s Considered function to shop by a range of environmentally friendly and ethical filters.

The outlet store had been planned for some time, according to Berchtold, but the company decided to fast track the launch due to the changing needs of consumers and brands in the aftermath of the global coronavirus pandemic.

Like traditional outlet stores, the new online store enables brands to clear end-of-season stock and reach more cost-conscious customers who may not buy their products at full price.

DFO regional manager Michael Quinn believes affordability is front of mind for shoppers even as life gets back to normal in some parts of the country.

“As life has returned to a relative normal pace across Brisbane, we’re seeing shoppers come back in-centre, which is fantastic to see, but it is affordability which is primarily driving their purchasing decisions,” he said in a media release.

DFO Brisbane has reported an uptick in demand across its fitness, apparel and homewares categories, with the owner of one homewares retailer seeing a 10 to 20 per cent sales increase for some products.

“Pasta machines, cocktail shakers, Spanish gin glasses, craft beer glasses, pizzas stones; these are a few of the items that we’re currently selling 10 to 20 times more than normal. People have started cooking again and are loving it,” Gordon McCone, the owner of Jones & Co and Lemon Ginger Kitchenware Outlet, said.

While skincare and cosmetics in China are usually subject to mandatory animal testing, Mecca has found a loophole in selling through TMall Global, an online marketplace that accounts for more than 30 per cent of the country's beauty sales and where testing is not required.

Launching the new market in the middle of a pandemic was "not ideal", said Ms Horgan. Lack of international flights has made distribution to China difficult, and Ms Horgan will attend the store's launch for more than 100 Chinese influencers and editors via live-stream from her home in Melbourne, where she is under stage four restrictions.

"We started in 1997 with seven international brands that we loved and nurtured and grew," Ms Horgan said. "The Australian customer now understands those brands. That's what we are doing in China, where Australian brands are perceived as having authenticity and high quality."

As for opening a bricks-and-mortar store in China, Ms Horgan isn't saying no. "We’re firing our bullet. We will learn, through TMall Global, everything we can about our customers and market. We will make sure our offer hits the bullseye.

"If we are successful in that, it opens up every opportunity for us. We are a bricks-and-mortar operator, and we offer something very unique in-store. We would love to replicate that in other markets. But let's crawl first and then see if we can walk and run."

The roles affected include those in the retailer's central support centre, regional management and in UK stores. A significant proportion will be through voluntary departures and early retirement.

The retailer said there has been a “clear … material shift in trade” to online, and the redundancies will reflect that change. More colleagues will “multi-task” and transition between the retailer's food and clothing and home business.

M&S also expects to create a number of new jobs as it invests in online fulfilment, a new ambient food warehouse and reshapes its store portfolio over the coming year.

Total clothing and home revenue was down 38.5% year on year in the 18 weeks to 8 August. In the eight weeks since stores reopened, total sales have been down 29.9% compared to 2019. During that period store sales were down 47.9%, while online continued to perform strongly with an increase of 39.2% on the previous year.

It said performance had varied across the store estate: some newer, out-of-town stores are close to last year’s trading levels in recent weeks, however, legacy town centre stores and some shopping centre fascias remain “heavily impacted” by social distancing and reduced footfall.

The retailer said its clothing sales mix has undergone a substantial shift from office dressing and formalwear to casual clothing and leisurewear.

As part of its ongoing transformation strategy M&S plans to deliver a higher proportion of sales through digital channels, and it will relaunch its data and CRM platform.

The retailer has acquired 1.9 million new online clothing and home customers since the start of the year. In the last eight weeks online sales have represented 41% of total clothing and home sales.

Chief executive Steve Rowe said: “In May we outlined our plans to learn from the crisis, accelerate our transformation and deliver a stronger, more agile business in a world in which some customer habits were changed forever. Three months on and our "Never the Same Again" programme is progressing, albeit the outlook is uncertain and we remain cautious. As part of the programme to embed the positive changes in ways of working through the crisis, we are today announcing proposals to further streamline store operations and management structures. These proposals are an important step in becoming a leaner, faster business set up to serve changing customer needs, and we are committed to supporting colleagues through this time.”

The group has performed ahead of its scenario planning announced at year end in revenue and cash.

Discount retail chain The Reject Shop has reported a $1.1 million profit in FY20 off the back of strong demand for everyday essentials across the cleaning, grocery, pet care and toiletry categories.

The full-year result is a significant improvement from the $16.9 million loss the company recorded in FY19 and shows that the turnaround strategy – a three-phase plan to fix, reset and grow the business – is working, according to TRS chairman Steven Fisher.

“The new leadership team has stabilised the business – the company has returned to profitability, has significantly reduced its inventory and has a strong balance sheet,” Fisher said in a statement about the FY20 results on Wednesday.

First up, fixing the business

The company is currently in the fix phase, which is all about simplifying the business and cutting costs. This can be seen in the reduction of in-store labour costs from 15.4 per cent of sales in FY19 to 14.5 per cent in FY20, thanks to a new rostering system that uses machine learning, and a 20 per cent reduction in head office jobs in April, though this added $1.5 million in one-off redundancy costs in FY20.

Occupancy costs remained flat in FY20 at around 14 per cent of sales, which the company called “too high”. Leases will be renegotiated as they come up for renewal, with 87 leases in holdover or set to expire in FY21, and another 130 set to do so in FY22. The Reject Shop has 354 locations in total across Australia.

The company has also gained operational efficiencies from its new approach to merchandising, which includes using more shelf- and floor-ready products and displaying high-volume products on the pallets they arrive on.

Later, the reset phase will involve delivering on The Reject Shop’s lowest price guarantee, homing in a smaller number of core categories and rolling out a consistent and improved store layout across the network. The grow phase will involve initiatives to improve customer loyalty and drive new customer acquisition by opening new stores and ramping up online.

Chief executive Andre Reich said there is more work to be done in the fix phase before the company can focus on the reset and grow phases, but some of the groundwork for those phases has already been laid.

Shift in sales mix

The company launched a new e-commerce site this week, and it started the shift towards more essential products in the second half of FY20 in response to an uptick in demand during the global Covid-19 pandemic.

The company reported a material increase in sales in the second half of FY20, with the cleaning, grocery, toiletry and pet care categories performing particularly well. There was also increased demand for craft and stationery products, toys, garden items, furniture, electronics, hardware and kitchen items, reflecting the fact that many consumers were spending more time at home. At the same time, there was reduced demand for traditionally strong categories, including Easter-related products, luggage, party and events and cards and gift wrap.

Overall, FY20 sales were up 3.4 per cent on the prior corresponding period to $820.6 million. Comparable store sales were up 7.1 per cent in the second half, up from 0.5 per cent in the first half, equating to a 3.5 per cent year-on-year increase.

The shift in sales mix towards lower-margin essential products rather than general merchandise contributed to a decline in gross margin by 125 basis points to 40.9 per cent. This also reflects the impact of markdowns taken on aged inventory in Q4 and the expectation of further markdowns planned for FY21, as well as the higher supply chain costs associated with higher sales in the second half.

However, reduced shrinkage helped the company grow gross profit to $342.4 million, taking into account the new lease standard. This was up on FY19.

Thanks to the cost-cutting measures outlined above, The Reject Shop grew EBITDA to $123.4 million in FY20, taking into account the new lease standard.

Excluding the new standard, FY20 EBITDA was $23.7 million, up 30.1 per cent on FY19. The company did not receive any wage subsidies under the JobKeeper program in the second half.

Statutory net profit after tax was $1.1 million in FY20. Not including the new lease standard, NPAT was $2.7 million. Either way, the company is back in the black after recording a $16.9 million loss in FY19.

Well-positioned to navigate uncertainty

The Reject Shop ended the 2020 financial year with a net cash position of $92.5 million, including $24.1 million from an equity raising, and no drawn debt. It had $70.9 million in inventory, a 30 per cent reduction on the prior corresponding period. Its existing banking facilities have also been extended from March to August 2021.

The board declined to declare a final dividend in FY20, given the recent equity raise the company’s current focus on fixing the business.

“The Reject Shop is well positioned to navigate the uncertain trading environment with its improved profitability and strong balance sheet – though there is more work to do to fix the company before we reset and grow,” Reich said.

However, the retailer's statutory net profit after tax sunk 20.9 per cent to $110.2 million due to a slew of one-off items affecting its bottom line, including $17.1 million in wage underpayment and remediation costs relating to its $62 million underpayment scandal.

Excluding the one-offs, which also include $5.5 million in restructuring costs and a $6 million adjustment for a new accounting standard, the company's NPAT rose 1 per cent to $154 million.

Online sales accounted for 10.2 per cent of Super Retail's total sales after growing nearly 45 per cent across the year, a result Mr Heraghty said was impressive given Super Retail's traditional retailing roots.

"We've been investing in online for some time, and I think we were able to get maybe a little bit more than our fair share of online sales," he said. "We've been able to hold our own with the pure plays, and for a traditional retailer, that's a big deal."

Mark Christensen, a fund manager at Super Retail shareholder Pengana Capital, said the company's online performance was "impressive" and the retailer remained well-placed to benefit from international travel being shut down.

"Not only are international travel budgets being re-diverted, but they're actually being diverted into domestic travel and domestic experiences, so that plays into Super Retail's portfolio quite well," he said.

Supercheap Auto sales rose 7.6 per cent to $1.1 billion and segment earnings jumped 11.9 per cent. Rebel sales grew 3.3 per cent to just over $1 billion.

However, the company's outdoor apparel division MacPac struggled, with sales falling 5 per cent to $131.9 million and earnings sinking 44 per cent to $7.2 million as the New Zealand-centric retailer suffered from the country's mandated seven-week shutdown.

MacPac was eligible for both JobKeeper and the New Zealand wage subsidy, comprising of $6.5 million in total stimulus, all of which went towards staff salaries.

Mr Heraghty said the company's board had considered the stimulus received when deciding Super Retail's dividend payout and executive bonuses. The company declared a fully franked final dividend of 19.5 cents per share, down 30 per cent on the prior year, payable on October 2.

"None of those government subsidies flowed through into the profit result, therefore none to the dividend and therefore, no manager or executive received a bonus because of government subsidies," he said.

"We have been extremely judicious to make sure that we're playing this very straight."

Super Retail's net cash at the end of the financial year was $37.3 million, excluding lease liabilities, aided by the company's $203 million capital raise completed in June.

Shares jumped 4 per cent to $10.97 in early trade before easing to $10.62.

Earlier this month it closed about 250 stores in Melbourne and regional Victoria for at least six weeks during stage four and stage three restrictions.

Last week landlord Scentre Group locked 129 Mosaic Brands stores in Westfield shopping malls in a dispute over unpaid rent.

Same-store sales in the June-half plunged 26 per cent after store closures and were down 15 per cent excluding store closures.

The group slashed operating costs,cancelled or delayed orders, which led to a 50 per cent fall in inventories, extended payments to suppliers, negotiated rent concessions with landlords and negotiated an extension of its working capital facility with ANZ until July 2021. Mosaic received about $31 million in government subsidies including JobKeeper.

Chairman Richard Facioni said although foot traffic and sales in July remained substantially below the prior year, cost reductions and continued focus on margin had helped deliver positive comparable store margin growth for the month.

No final dividend was declared and the group, which ended the year with net cash of $3.6 million, cancelled its interim dividend.

It was a year of two "remarkably different halves," Vicinity chief executive and managing director Grant Kelley said.

The steep decline in values mirrors rival Westfield which also expects its portfolio to plunge 10 per cent over the same period.

Foot traffic in Vicinity’s malls in states that are largely free of harsh social distancing restrictions has bounced back to near pre-COVID levels. “What we’ve learned is that as state economies move into a post-COVID world, they do so rapidly and shopping picks up quickly,” he said

But retail landlords haven’t fully escaped the infection zone yet.

A severe six-week lockdown in Melbourne and restrictions in other parts of Victoria are set to decimate earnings as traders close bricks and mortar stores and instead focus on online sales.

Nearly half of Vicinity’s assets and earnings are in Victoria.

The group’s funds from operations per security were 13.7¢, down from 18¢ in the 2019 financial year. Its distribution per security will remain at 7.7¢ after Vicinity decided to scrap its second half distribution payout and refrain from providing any forward guidance.

Shares in the retail focused landlord fell 4 per cent by mid afternoon trade to $1.29.

The Iconic has made a strong play for the Australian sporting apparel, footwear and accessories market with a new TVC advertisement. 

Entering the sports market four years ago, the eTailer now stocks 100 international and local sports brands including Nike, P.E Nation and Adidas. 

The new ad showcases The Iconic's sports product offering and delivery proposition and is supported by a site refresh that features a new landing page that mirrors the creative used in the TVC. 

The Iconic CMO Alexander Meyer said that the ad is just the beginning for the business in the sports space. 

"When we entered the sport market four years ago we wanted to ensure we did this in an iconic way.

"Our latest sport TVC does just that.

"It captures the same sense of liberation and self-expression that’s embedded across our entire business, while reminding our customers that we have the best sports brands, the best sports products and the best delivery across the country.

"The Iconic is the premier destination for sport in Australia and New Zealand, and this is only just the beginning," he said. 

Trading through lockdown and making a strong commitment to the health and safety of its team has paid off for JB Hi-Fi Group, which on Monday revealed an 11.6 per cent increase in sales to $7.9 billion during FY20. 

The result, driven by customers decking out their home offices with new electronics and spending on TVs, audio and small appliances, led to a statutory net profit after tax increase of 21 per cent year-on-year to $302.3 million. 

In Australia sales grew 12.5 per cent, while the New Zealand business suffered the impact of mandatory store closures with a sales decrease of 5.7 per cent. 

And in an environment that has seen many of its contemporaries struggle, JB Hi-Fi has flourished, according to CEO Richard Murray. 

“This is a strong result in the most challenging of times,” Murray said.

The result was achieved through the business’ five competitive advantages – it’s scale, low cost operating model, store locations, supplier partnerships and multichannel capabilities.

The group saw strong online growth as well, with online sales up 48.8 per cent during the year to $597.5 million, with Q4 sales in particular up 134.3 per cent. 

“The Group has worked very hard to maintain our position as the number one destination for tech, consumer electronics and home appliances, and we’re focused on maintaining a resilient retail model that rewards our customers and team for their loyalty.

“We’re obviously really proud of these results and want to call out the team for what’s been a massive period over Covid-19 – they just keep giving.”

However, JB’s warehouse team have essentially been working under Boxing Day conditions for months, Murray said, and due to the extreme level of demand the business is beginning to run into supply issues.  

“The [warehouse} guys are working full-time just to get stock into the business… [but] I’m pleasantly surprised with the inventory we have on hand that we can drive the sales numbers we are,” Murray said.  

“If you had asked me 12 months ago if we could achieve double digit sales growth with this level of inventory, I wouldn’t have thought so, so it’s a great outcome.”

In New Zealand, gross profit fell to $36.8 million, compared to $40.8 million the year prior. Sales were materially impacted, but the business was able to mitigate the financial losses due to claiming $3 million in wage subsidies from the New Zealand Government. In Australia JB Hi-Fi Group did not receive JobKeeper.

Murray declined to give a sales outlook into FY21, though said the group has seen online sales accelerate in Victoria following the rollout of Stage 4 store closures.

“This, combined with continuing sales momentum across the rest of Australia, has resulted in the group achieving strong sales growth in August to date,” Murray said.

David Jones parent Woolworths Holdings has declared asset impairments in its store fleet, due to the ongoing impact of the Covid-19 pandemic across its operating markets. 

Sales at the Australian department store chain fell 19 per cent in March, and Woolworths Holdings warned that trading conditions group-wide had continued to suffer.

“Covid-19 had a significant impact on the performance of the group in the second half of the financial year, and it is expected to do so for at least the remainder of the calendar year given the fluid and challenging environment,” Woolworths Holdings said in a statement on the Johannesburg stock exchange.

“This necessitated an assessment of the carrying value of assets [which consequently] has been impaired.”

Woolworths Holdings didn’t specify which of its businesses would be impacted.

Group chief executive Roy Bagattini said in May, however, that David Jones would be seeing an accelerated restructure of its store network and that discussions with landlords are already underway via a partnership with UBS. 

“Notwithstanding the significant challenges we currently face as a business, we are well placed to respond rapidly and effectively to changing customer dynamics and capture the market opportunities that arise [and] we remain focused on the implementation of the strategic initiatives that will address the current and emerging needs of all our stakeholders,” Bagattini said.

In July the business also reiterated its plan to further hedge its bets with a push into the convenience sector, with its high-end David Jones Food sites set to open in 21 new locations by the end of the calendar year.

“We are excited about the next phase of the rollout and the opportunity to share our quality offering with even more customers in Victoria and New South Wales,” said David Jones Food managing director Pieter de Wet.

In an Australian menswear first, M.J. Bale will be 100% carbon neutral by the end of 2021.

The 11-year-old menswear brand, which operates over 50 stores across Australia, is working on a series of emission reduction strategies to reduce its carbon footprint.

Scientist Andrew Moore of Life Cycle Logic has begun a formal carbon footprint assessment of the entire organisation, including M.J. Bale’s extended ecosystem of partners and suppliers.

The assessment will be completed in early 2021, then independently audited.

Where existing technologies prevent the brand from eliminating carbon output, M.J. Bale will completely offset in verified projects operating within the regenerative agriculture and renewable energy spheres in Australia and abroad.

CEO Matt Jensen said the move is at the heart of brand values. 

“As an Australian-owned brand we enjoy certain privileges of the land and environment.

"But these privileges carry responsibilities. We recognise that future generations of Australians will inherit the decisions we make today.

"And as we saw in the recent bushfires, if we lose our environment, we lose our communities and livelihoods. In my mind, investing in the environment is investing in our collective future – we don’t consider it optional.”

Life cycle assessment expert Andrew Moore praises the move.

“I've been impressed by the enthusiasm and level of commitment that everyone at M.J. Bale has demonstrated to a carbon neutral future for the brand.

“It has also been very encouraging to see how quickly the supply chain partners have become involved and transparently shared information on their operations.

"From my experience, these two ingredients – commitment and willingness to collaborate – are key for the success of a carbon neutral program.”

"Premier Retail’s online sales deliver significantly higher EBIT margin than the EBIT margin of the retail store network," the company said. Second half EBIT is expected to grow between 9.7 per cent and 11.7 per cent to around $59 million.

Sales at the company's reopened stores since May have been strong, it said and Premier implemented "hard" cost-cutting measures across the business. The company also stopped paying suppliers during the shutdown period.

However, Premier has also been a significant beneficiary of the federal government's JobKeeper wage subsidy program and a similar program in New Zealand, with the company signing on to the scheme in April after total sales fell 74 per cent during the first six weeks of the second quarter.

The company noted it had "maximised" the use of various subsidy schemes along with rent relief globally, however, it did not specify the amount claimed through JobKeeper.

With 12,000 staff stood down around the world, the amount of JobKeeper claimed by Premier is likely to be in the tens of millions. In New Zealand, the company has claimed $NZ4.56 million ($4.19 million) for 840 staff.

Premier also refused to pay rent for its stores during the pandemic shutdown, a move that has likely significantly reduced costs for the company. Further details on the subsidy amounts will be provided at the company's full-year results in late September.

Angus Gluskie, managing director at Premier shareholder White Funds Management, said while the significant stimulus received by Premier was a short-term win for the business and its shareholders, he questioned if that was the intention of the JobKeeper program.

"On the one hand, the government subsidies are doing what they meant to do, which is to offset a downturn. But in the case of Premier making a lot of money from the online side of their business, ... it's not quite what its meant to be doing," he said.

"In the short run, [Premier] has been an incidental beneficiary of what's occurring, but it's certainly not exactly what was intended."

However, the fund manager said Premier's online performance had also been a key contributor to the record figure, noting the business had positioned itself well by investing in its online platform prior to COVID-19.

These results relate to Premier's retail division only and not to its investment portfolio, which includes sizeable stakes in department store Myer and appliance manufacturer Breville, the latter of which fell 8.4 per cent to $25 on Thursday after reporting a weaker-than-expected full-year result. Premier's 26 per cent stake in the company is worth around $880 million.

The A2 Milk Company has named David Bortolussi as its new MD and CEO. He will take up the role in Sydney early next year, succeeding Geoffrey Babidge who has been interim CEO since last December.

Bortolussi is currently group president – international innerwear with apparel company HanesBrands. As CEO of Pacific Brands from 2014, he oversaw the group’s restructure prior to its acquisition by HanesBrands in 2106 when he was tapped for his current role.

In a statement, A2 Milk Company highlighted Bortolussi’s extensive exposure to Pacific Brands and HanesBrands’ Asian sourcing markets, particularly China, including various brand-distribution partnerships in the region.

A2 Milk Company chairman David Hearn said the appointment followed an extensive global search. 

“David has demonstrated significant skill in guiding businesses through periods of significant growth whilst also effectively managing the changes that expansion frequently requires,” he said.

“The A2 Milk Company is going through a period of continued strong growth in dynamic markets and David’s skillset and comprehensive strategic and operational experience will serve the company well.”

Bortolussi said the A2 had created “a very distinctive consumer proposition, amazing brand and strong culture with so much potential” and he looked forward to being part of the company’s next growth phase.

Hanes Australasia chief executive and group president David Bortolussi has resigned to take up an opportunity outside of apparel.

Locally, Hanes is home to several apparel and lifestyle brands, such as Bonds, Bras N Things, Champion and Sheridan, and trades across a 500 store network.

Bortolussi was brought on during the acquisition of Pacific Brands by Hanes in 2016, and worked at Pacific since 2009.

During the last 11 years Bortolussi has helped the businesses achieve significant growth, Hanes said, and transformed it into a leading omnichannel retailer.

“David has also developed a purpose driven culture, focused on diversity and inclusion, sustainability and strong community partnerships to increase our impact beyond our own business,” Hanes said.

Bortolussi will remain at the helm until February 2021 to ensure the company has adequate time to appoint a new leader.

Internationally, Hanes trades in more than 40 countries, and employs around 63,000 people.

Michael Hill has revealed the power of virtual offerings during COVID-19, witnessing 22,000 customers utilise its new 'Virtual Ring Try-On' feature. 

Launching the new digital initiatives in July, the business has also seen 200 customers make 'Virtual Personal Jewellery' appointments. 

Michael Hill chief brand and strategy officer Vanessa Brennan said that the business introduced the features to ensure customers had access to a high-quality experience while shopping on digital channels.

"We’re always looking for unique and exciting ways to engage and connect with our Michael Hill community.

"Choosing jewellery is so personal and we want to provide the highest quality customer service at every touchpoint – whether it be digitally or in-store," she said. 

In virtual appointments, customers can connect with a Michael Hill expert advisor to get help on jewellery fitting, styling or engagement ring consultations. 

The consultants are equipped to help a range of customers, with virtual appointment language options including English, Mandarin, Hindi, Taiwanese, Punjabi and more.

Meanwhile, customers are also able to try on 950 products virtually through the Virtual Ring Try-On feature. 

Using augmented reality technology, customers can take a picture of their hand and will then see the ring placed on their finger. 

For those customers who still prefer to shop in-store, Michael Hill is offering appointments with in-store consultants who will offer dedicated time to providing personalised assistance. 

Roughly two years after Napoleon Perdis ended its 16-year relationship with David Jones, the makeup brand, now under new ownership, is returning to the department store’s beauty counter in 12 locations across the country, as well as online.

As part of this change, Napoleon Perdis products will no longer be available in Priceline stores. The start of the brand’s partnership with Priceline in June 2018 coincided with its exit from David Jones.

At the time, the brand’s founder and then-CEO Napoleon Perdis told Inside Retail that Priceline was Australia’s answer to the successful US beauty chain Ulta, and that the pharmacy retailer’s broader reach would allow him to grow.

But just six months later, the brand entered voluntary administration. According to a report in the Australian Financial Review, the administrators determined the brand was likely insolvent on or about September 30, 2018, after losing $2.2 million and $2.4 million in the previous two quarters.

In April 2019, creditors handed control of the company to Kuba Investments, a private investment company headed up by China marketing expert Livia Wang and former Witchery and Marcs executive Henry Lee.

The partnership with David Jones is a major milestone in the revitalisation of the brand under their ownership.

Starting this month, Napoleon Perdis will be available on David Jones’ e-commerce site, and will subsequently launch in 12 department stores, including Bondi Junction and Miranda in the Sydney area and Rundle Mall in Adelaide. There are plans to expand into additional stores in the future.

“This reinforces our positioning as Australia’s number one prestige makeup brand and will also allow greater accessibility for customers to shop with us,” Lee, Napoleon Perdis’ new CEO, said in a statement.

“This is just the start of our journey to reinvigorate our brand both domestically and internationally.”

The focus over the past 15 months has been on expanding into new sales channels, which has paid off, according to Lee. New sales channels now account for 35 per cent of overall sales.

In terms of product, Lee said the company is focused on extending the brand’s existing product ranges, launching newly formulated products and providing a first-class in-store experience.

“We will continue on our mission to deepen the emotional connection with our customers and to re-establish Napoleon Perdis’ position within the market as a beauty authority,” he said.

Lee also referenced the brand’s educational and artistry background (the founder was a makeup artist). But while the makeup brand retains his name, Napoleon Perdis is no longer involved in the business.