The Noni B Limited (ASX: NBL) share price is up 16% in early trade after giving the market a trading update.
Noni B is a fashion retailer that operates a number of brands including Rockmans, Beme and W Lane. It recently acquired a number of other retail chains from Specialty Fashion Group like Rivers, Millers, Katies, Crossroads and Autograph.
Noni B Trading Update
Noni B revealed that it grew sales by 140% to approximately $457 million in the first half of FY19 after the acquisition of the Specialty brands.
Strong Christmas trade saw like for like (LFL) sales growth of 1% in December and that helped LFL sales for the first half declined by 3.1% instead of the previously-predicted 5% decline at the end of December.
Noni B also reported that it had cash holdings of around $65 million at 30 December 2018, resulting in a net cash balance (including debt) of $42.8 million.
Noni B Profit Guidance
The improved trading and “integration efficiencies” has resulted in management predicting that EBITDA will be approximately $29 million for the first half of FY19, compared to the market consensus of $25 million to $30 million (click here to learn what EBITDA means).
Noni B said its full-year EBITDA result is still expected to be around $45 million.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).