Profits double, sales rise at Will Vicars-owned luxury retailer Oroton

afr.com:

Oroton, one of the oldest Australian luxury brands, has recorded double-digit sales growth for a second year and a doubling in profit, signalling the retailer is back on solid footing after years of turmoil.

The 85-year-old leather goods and accessories retailer was purchased by billionaire fund manager Will Vicars in 2017, and former McKinsey partner Jenny Child was appointed chief executive in 2021.

Ms Child said regaining relevance with consumers under the eye of creative director Sophie Holt has been key, as has sharper discipline around less discounting. “The other thing we’re doing is inspiring the customer in the stores and online with a great experience. And we are actually building a relationship with customers via experience,” she said.

Oroton CEO Jenny Child says consumers are making more considered purchases, but still willing to invest in nice pieces. Dominic Lorrimer

The luxury fashion retailer doubled its operating profit to $7.4 million driven by an 18 per cent jump in sales to $114.5 million in the year to July 29, according to documents lodged with the corporate regulator. Oroton returned to profitability in 2022.

Ms Child said the average price per item sold was up 20 per cent last year, with shoppers choosing higher value items more often, and buying at full price. Better cost and inventory management helped to boost profits. Same store sales grew 12 per cent boosted by increased trading days, and a shift back to physical stores after the pandemic. Online sales gained 3.4 per cent over thee year, which now makes up 30 per cent of group sales.

Mr Vicars pumped in $25 million to rescue Oroton, where he was a long-time shareholder and director. Since then, other major Australian brands have been bought