Sharechat Logo

Postie Plus sales rise 4.3%, putting retailer on track to meet target of annual profit growth

Thursday 27th May 2010

Text too small?

Postie Plus Group, the Christchurch-based clothing retailer, posted a 4.3% gain in third-quarter, putting it on track to lift full-year earnings provided the remainder of the financial year plays out as expected.

Sales rose to $26.5 million in the three months through April, from $25.4 million in the same period of 2009, the company said in a statement today. Shares of Postie Plus rose 5.7% to 37 cents. The stock is down 12% this year, under-performing the NZX 50’s 8% decline.

Chief executive Ron Boskell said he anticipates tough competition for sales in the final quarter as retailers look to shift winter stock to make way for the new season. Demand for winter goods has been hampered this year by a mild, dry autumn, which hurt sales at retailers including Warehouse Group.

“For the first time this financial year we saw our sales momentum slow down, which we believe reflects the impact of the economy on the retail environment, particularly during the month of April, Boskell said. Despite expectations of a tough final quarter, the retailer expects “no significant stock overhang at year end and we continue to control this positive position diligently.”

The company had net income of $615,000 in 2009, a turnaround from the previous year’s $10.9 million loss, when weak consumer spending, shrinking margins and one-time costs related to the sale of its unprofitable Arbuckles outlets pushed it into the red.

Postie Plus expects to open two new stores in the fourth quarter, in Dannevirke and Waipapa, bringing the chain to 81 outlets.

The retailer “has continued to improve performance and protect margin in challenging market conditions,” Boskell said.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Pumpkin Patch today's best NX50 performer after return to profit in 2013
Postie Plus expects loss in 2013 earnings as sales fall 10.5 percent
Postie Plus appoints No 1 Shoes executive Binns as new CEO
Postie Plus 3rd-quarter sales from continuing ops fall 14 percent on stock disruptions
Postie Plus reels from outsourcing woes as 1H loss widens, burns through cash
Postie Plus gains extension of banking facilities, avoids breach
Postie Plus warns of further potential breaches of banking covenants
Postie Plus renegotiates banking covenants because of potential breach
Postie Plus posts full-year loss on costs
Postie Plus FY sales fall 4.4% on sale of Babycity, flat Postie revenue