RCG Corporation $6.78m Profit 1H2013

Retailer, RCG Corporation (ASX:RCG) have released its first half results to its shareholders and investors.

• RCG Corporation net profit of $6.78 million, up 13.8 percent from $5.96 million.
• RCG Corporation owns Shoe Superstore, RCG Brands (which includes Merrell shoes) and Athlete's Foot.
• Shoe Superstore was put into administration – with the chain having 9 stores and employing 50 staff. It had acquired the business 4 years prior and last year it posted a trading loss of $830,000. Shoe Superstore was acquired in 2009 and was first started by entrepreneur Mark Teperson in 2005.
• RCG chief executive Hilton Brett said, "As we explained to RCG’s shareholders at our annual general meeting in November, Shoe Superstore has been subjected to full strategic review and repositioned to appeal to a younger consumer. However, with the alarming decline in high street shopping over the last 12 months we have been unable to attract a sufficient number of new customers to make this viable. We could not continue to support a loss making business that absorbs a significant amount of management time in the hope that over the long-term strip shopping conditions improve and that we secure additional brands. Both the financial and opportunity cost of doing so would not be in the best interests of shareholders and they have taken the correct decision stop supporting the business, leaving the board of Shoe Superstore with no alternative other than to place the business into voluntary administration."
• RCG Corporation earnings was $6.78 million, up 13.8 percent.
• RCG Brands wholesale up 27.7 percent to $13.89 million.
• RCG will pay an interim dividend of 1.75 cents per share.