Bad news is good news for Postie Plus

After a third-quarter sales slump, business is booming for Postie Plus. Picture / Martin Sykes

Factors hurting most retailers have boosted turnover at Postie Plus, which yesterday reported a 23.1 per cent rise in fourth quarter sales.

The bumper quarter put the listed clothing company back on track to reinstate its earlier forecast of a full year $5 million net profit.

It had earlier warned that it might miss its targets because of slow April quarter sales.

The company defied wider trends that led to Statistics New Zealand this week reporting a 0.5 per cent drop in retail sales in the June quarter.

Postie Plus chief executive Ron Boskell said pressures hurting other retailers - such as high petrol prices and increased interest rates - favoured Postie Plus.

"I know it's a bit of a struggle out there," said Boskell.

"With petrol prices and all the rest of it, people have a look where their spending is going to go."

The company owns the Postie Plus, Arbuckles and Baby City chains.

Boskell said the group's tactic of reducing prices and marketing its brands as value-for-money was attracting new customers.

"We have targeted a number of things as a group. In the apparel side, it is to provide more style and keep the value there," said Boskell.

"I think the value proposition and some nicer style has worked for us this winter."

He said all brands and regions had performed well in the quarter.

Chairman Peter van Rij said the company was on course to reinstate February guidance of a $5 million net profit for the year to July - almost double its $2.6 million result for the year earlier.

"We are conscious, nevertheless, that competition in our sector is unlikely to reduce and that the profit target is still not at the level we would like to see achieved on our level of turnover."

The company announces its annual result next month.

Shares in Postie Plus yesterday rose 5c, closing at 86c.