Ugly retail news keeps coming as Kirks' profits fall 30pc

Kirkcaldie & Stains' Wellington store

Wellington department store Kirkcaldie & Stains is feeling the effects of a slowing economy, saying annual profits have fallen 30 per cent.

The high end retailer said it is experiencing a difficult retail environment like many retailers throughout the country.

After-tax profits were down $778,000 in the year ended August 31, a fall from $1.106 million in the same period last year.

The profit before tax of $1.29m was down 21 per cent from the $1.63m in the same period last year.

Kirks has declared a final dividend 3 cents a share, payable on December 15 to shareholders on the register on December 5.

The company continued to upgrade and enhance the main store during the year, particularly in the cosmetics gallery.

The highlight during the year was the opening of the new exclusive "Mecca Cosmetica" department.

Despite these challenging economic conditions retail sales were almost level with last year at $40.4m, compared to $40.5m.

- NZPA