An unexpected rise in consumer spending during the winter helped listed retailer Kirkcaldie & Stains beat forecasts, but its profit was still well down on last year.
The company yesterday reported a net profit of $574,000 for the year to August 31 - down 52 per cent onthe year before.
The company said sales were buoyed by a fashion clearance held on Wellington's waterfront in May.
Sales at the traditional end-of-season sale in late July were also up compared with a year earlier.
Fluctuations in consumer demand had caused some uncertainty and volatility in the retail market but the property market in Wellington had remained stable and strong, the company said.
This resulted in an 18 per cent lift in the pre-tax profit delivered by the group's property company - the owner of the Harbour City Centre.
Occupancy rates were held at close to full capacity and rental income rose 4 per cent to $4.4 million.
Actions were being taken on the retail front, the company said. Costs were being reviewed, and the Harbour City Centre, where Kirkcaldies' specialist Christmas store had been opened this year, was being expanded. The move had also allowed room for pre-Christmas expansion at Kirkcaldies' flagship store.
The board decided no dividend would be paid this year, but said that if retail trends continue to recover, it was expected that the payment of dividends would resume this financial year.
