New Zealand apparel retailer Postie Plus Group Limited has revealed more store closures off the back of lacklustre trading performance for the first half of the 2012 financial year.
As previously reported in ragtrader.com.au, results for the retailer for the six months ending 29 January 2012, saw sales down 4.6 per cent to $53.92 million, a drop of $2.6 million compared with last year's figures.
Gross profit for the group was $28.65 million, compared with $29.29 million in the prior corresponding period, with earnings before interest and tax (EBIT) also down by $0.69 million, compared with a loss of $0.62m last year. Net earnings declined by $0.77 million compared to $0.75 million in the previous corresponding period.
In a further statement to market this week, the company – which currently operates two national retail chains, Postie and Babycity – also confirmed it has closed a further two Babycity stores in marginal locations in addition to the four store closures it announced earlier this month, reducing the number of Babycity stores to 18.
However, Postie Plus Group Limited CEO Ron Boskell said that despite flat figures for the period the group is well-placed for more positive results going forward.
“Whilst we are dissatisfied with a first half loss, we recognise the importance of clearing our winter seasonal apparel each spring. This is usually followed by profitable trading in the second half year,” he said.
“Despite the challenging environment, our core businesses are in excellent shape for the forthcoming all-important winter season and the Postie chain of 81 stores is performing well, including all of our Christchurch stores. Our Postie upgrade programme continued during the period and we continue to see a positive response from customers to the refreshed stores”
Boskell added that the group's online ventures for brands Postie and Babycity are also progressing well.
“We have continued the development of our online retail business. PPGL is pleased with the increasingly strong market positions held by our retail web sites for Babycity, Postie and Schooltex,” he said.