Despite reporting a slight decline in full-year net profit in the year to June 30, due to "depressed conditions", Fantastic Furniture remains cautiously optimistic for the current year.

The retailer has declared a net profit after tax of $18.53 million for the period, down from $18.59 million in the prior year. Meanwhile turnover was $419.1 million, up 4.2 per cent from $402.08 million in the prior year.

Managing director Julian Tertini reportedly said the second half of the 2010 financial year was one of the "most challenging" experienced for local retailers.

"Although Australia avoided recession, in the aftermath of the GFC discretionary retailers faced extremely depressed conditions," he said. The company had used the downturn as an opportunity to further consolidate operational efficiencies and build a stronger structural foundation for focused growth across the group, he added.

While furniture retailing would remain highly competitive, particularly in the first half of the current financial year, Fantastic's outlook was optimistic.

"As an indication, initial trading for the first seven weeks of the new financial year has seen positive sales growth for the group overall, particularly in the flagship brand, Fantastic Furniture."

However, discretionary consumer spending would remain susceptible to any upward movements in interest rates and unemployment levels, the company said.

 

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