Cotton On posts record sales after overseas push
Key Points
- Cotton On posted record sales of $2.2 billion in fiscal 2023.
- The group’s brands include Cotton On, Kids, Rubi, and Typo opened 100 stores overseas last year.
One of Australia’s biggest retailers, Cotton On, backed by billionaire Nigel Austin, is advancing its international push after opening more than 100 overseas stores last year.
The Australian market still makes up over half of group sales, which reached a record $2.2 billion, up 4 per cent, over the 2023 financial year across its various brands including its namesake chain, Typo, Supre and Rubi, according to accounts lodged with the corporate regulator.
Cotton On CFO Michael Hardwick (left) and CEO Peter Johnson at the Geelong head office. Eamon Gallagher
The Geelong-based fast-fashion behemoth’s bottom line was dented by higher rent and finance expenses, as well as a jump in materials costs and wages over the year to June 25.
Net profit was just $5.9 million, reduced from $114.2 million in 2021-22, the accounts of parent entity COGI Pty Ltd showed.
Sales growth in Australia was strong, up $53 million to $1.2 billion. North America achieved sales exceeding $401 million, Africa $183 million and Asia – retail and wholesale – $274.8 million.
After stripping out $56.6 million in dividends, retained earnings were $189.5 million at balance date.
During 2022-23, Cotton On increased its offshore retail footprint by 15 per cent. The group also invested in new distribution facilities.
“International expansion remains a key strategic priority for the group, in line with our vision to take Aussie lifestyle brands to the world, delivering good along the way,” the account said.
Cotton On’s borrowings reached $326 million, up from $215 million.
The company also rejigged its operating model into two primary divisions: Cotton On, which includes Cotton On, Kids, Body and Rubi; and Emerging Brands, which includes Factorie, Typo, Supre and Ceres Life.
Cotton On was founded by Tania Austin and her former spouse Nigel Austin, starting with two stores in 1991 to 1500 stores today across eight brands in 22 countries. Ms Austin left the business in 2008, and bought retailer Decjuba.
Mr Austin, who landed at no.65 on The Financial Review Rich List with an estimated fortune of $2 billion, is notoriously private.
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