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Annual net profit for clothing retailer Postie Plus fell nearly a third from last year's record to $2.7 million, after a profit warning that it would fall short in a difficult year.
The company expects pressures to continue for the current half-year as consumers face rising costs.
The board will provide a trading update at the annual meeting in November, but said it was "quietly confident that our retail strategy, applied across 117 stores nationwide, will successfully prevail should economic conditions prove demanding in 2008".
Net profit for the second half rose 1 per cent to $3.2 million, but the Christchurch-based company was unable to recover from a first-half deficit of $489,000.
Weighing on the annual result were higher stock management costs, more spending on brand development and infrastructure, restructuring, and lower consumer confidence, chairman Peter van Rij said.
The company, also owner of the Arbuckles homeware and Baby City chains, improved operating margins and achieved good sales in a difficult environment, the company said.
Sales for the year ended July 31 rose 8.5 per cent to $136.6 million, while same-store sales rose by 2.95 per cent.
Directors declared a final dividend of 2.5c a share. Shares in Postie Plus, 8.6 per cent owned by Kathmandu founder Jan Cameron, closed unchanged at 84c, having traded between 67c and $1.08 in the past 12 months.
- NZPA
