Postie Plus stores traditionally do better during winter. Photo / Martin Sykes
Postie Plus stores traditionally do better during winter. Photo / Martin Sykes
KEY POINTS:
Clothing retailer Postie Plus is hoping winter sales will help turnaround a $2.9 million first-half loss, but forecasts for a warmer than average autumn will be cold comfort.
The group, which runs the Postie Plus, Arbuckles and Baby City chains, traditionally performs better during winter.
But NIWA's NationalClimate Centre expects the country to continue to feel the effects of a strong La Nina, with temperatures likely to remain average or above average throughout the country this autumn.
The retailer attributed the first half loss to difficult trading conditions and measures to reduce stock levels as a result of an overbuy 15 months ago.
The loss of $2.9 million, compared with a loss of $445,000 a year earlier, was slightly above the $2.8 million the company forecast in January, when it also expected annual net profit of around $2 million.
Chief executive Ron Boskell was more circumspect yesterday.
"Whilst the directors remain confident that our traditionally stronger autumn-winter seasons will drive a second-half recovery, the rate of that recovery and the extent to which the first-half loss is offset, is unpredictable given the prevailing economic slowdown."
He wanted to wait until after the key winter months of April and May.
Sales for the half year nudged up on an all-stores basis by 1.06 per cent to $65.79 million.
But Boskell said that came at the expense of reduced margins as the company sought to meet the market and reduce its seasonal stock.
He expected the move of the distribution centre from Westport to Christchurch to be completed in the next six months - a move anticipated to bring a $2 million benefit to the company over the next three years.
The possible sale of the Arbuckles chain was continuing with enquiries by "several" parties, said Boskell.
He said there was no firm decision on a sale, but expected to have better idea in early May.
The company will not be paying an interim dividend, but the annual dividend will be reviewed at year end.
