COUNTRY Road expects profit before tax to increase by 70-80 per cent in 2009 after sales rose at the clothing retailer.
Profit before tax for the 6 months to December 31 would be between $13.6 - $14.4 million, compared with $8 million in that period the year before.
Sales rose 20 per cent to $174.8 million, the Melbourne-based retailer said.
Total sales for the first 20 weeks of the new financial year grew 17 per cent over the corresponding period in 2007, suggesting that sales in the Christmas period were significantly stronger than the year before.
"This is a very pleasing performance in a tough market,'' chief executive Ian Moir said.
"Achieving double digit like-for-like store sales growth in both our retail stores and in our concession outlets within Myer and David Jones demonstrates that our focus on great merchandise that represents exceptional value has been well received by our customers.''
Part of the growth in profit also came from savings through reduced promotional activity and higher margins.
Mr Moir said the company was likely to face a tough calendar 2009.
"We remain cautious about growth prospects in calendar 2009,'' Mr Moir said.
"However, we believe our business is now more capable of negotiating a slowdown in domestic retail conditions than it previously has been.''
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