Oroton Group (ORL)

By Jason Fittler

Ladies you will know their hand bags, gentleman most likely have one of their shirts. This brand is known for their style and price tag.

ORL provide high-end clothing and accessories; with well know qualities brands ORL is well situated to ride out of the recessions. Once you wear this brand it is hard to go back.

The Group owns and manages the Oroton brand and is the sole licensee of Polo Ralph Lauren clothing in Australia and New Zealand. The Group distributes its branded products through its own retail outlets and via wholesale customer relationships with other retailers such as David Jones and Myer.

This flagship brand was traditionally involved in leather goods, but has since expanded into jewellery, ties, umbrellas, knitwear, lingerie, men's underwear and shoes. Further store rollouts in NSW, brings total stores and department store concessions to 46 overall in Australia and New Zealand.

This company first listed on the ASX in 1987 and has been a steady performer since.  When looking at the retail sector in this market you need to be specific as to which business you buy. ORL has a strong brand and customer loyalty. They have positioned themselves well in the market and cater to the high net wealth individual. It is these wealthy individuals whose spending patterns will not change in the tough economic times ahead.

With a gross dividend yield of 9% expected for 2012 coupled with the recent drop in the share price I would look to build a holding in this business. It is providing you exposure to the retail sector and providing some protection to an expected fall in retail spending.

For more information on Oroton Group (ORL) please contact us on 07 4771 4577.