Postie Plus shares jump on profit boost

Wednesday 28th September 2011

Clothing chain Postie Plus Group boosted net profit 58% as it grabbed more market share despite weak demand from households. The stock rose 8.1%.

Net profit was $656,000, or 1.64 cents per share, in the 12 months ended July 31, up from $415,000, or 1.04 cents, a year earlier, the Christchurch-based company said in a statement.

The retailer boosted revenue 1.7% to $115.7 million. The shares gained 1.5 cents to 20 cents in trading today, after shedding more than a third of their value this year.

“Our trading year had the distinct promise of a solid year, with Postie yet again making market share gains in a sector that has been flat for the last two years,” chairman Richard Punter said.

Other clothing retailers, including Pumpkin Patch and Hallenstein Glasson Holdings, reported weaker earnings as households put more money towards repaying debt than buying new clothes, especially in an unseasonally warm winter.

Chief executive Ron Boskell said Postie Plus reduced operating expenses as a percentage of sales to 47.7% from 48.2%, with additional savings made in its international supply chain.

The board declared a final dividend of 1 cent per share, or $400,000. The company didn’t make an interim dividend payment.

BusinessDesk.co.nz

Comments from our readers

No comments yet