Sharechat Logo

Postie Plus expects loss in 2013 earnings as sales fall 10.5 percent

Friday 30th August 2013

Text too small?

Postie Plus Group, whose shares are the worst performers on the NZX this year, said annual sales from continuing operations fell 10.5 percent and reiterated it faced a "significant" annual loss because of problems with its outsourced distribution centre and difficult trading conditions.

Sales from continuing operations fell to $84.2 million for the 52 weeks of this year, down from $94.1 million in the 53 weeks last year, the clothing retailer said in a statement. Postie Plus expects to report a significant loss in annual earnings on Sept. 27, the company said.

Shares in Postie Plus were unchanged at 13 cents and have slumped 46 percent so far this year.

Postie Plus is in talks with potential investors and its bank about raising more capital, the company said. The retailer has been dealing with problems at its outsourced distribution centre, burning through cash and breaching its banking covenants in the process.

Last year Postie Plus outsourced its distribution systems and processes to a purpose-built centre in Mangere as part of its shift to Auckland, where it saw greater opportunities.

  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 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
Postie Plus says Ron Boskill to step down after 7 years as CEO