Home / Knowledge / News / Apparel/Garments / Postie posts profit plus in a very tough market
Postie posts profit plus in a very tough market
Sep '11
New Zealand retail group Postie Plus Group Ltd has improved net earnings in the year ended 31 July 2011, despite a very challenging retail environment throughout all provinces.

Full year group sales increased to $115.73m, (2010: $113.77m).
Gross profit was $60.19m (2010: $60.50m). Operating profit was $1.92m (2010: $1.70m). Profit before interest and tax is $1.07m (2010: $0.78m).

Net profit of $656,000 has improved last year's bottom-line result of $415,000 although not as great as had been targeted at the half-year.

“Our trading year had distinct promise of a solid year, with postie yet again making market share gains in a sector that has been flat for the last 2 years,” said the chairman Mr Richard Punter. “However, the ongoing economic uncertainty has seen consumers inclined to commit more to savings than to personal spending on clothing.”

“In addition, the 2010-11 period has had more adverse events than most years in our history, with a sequence of natural disasters and a May-June 2011 experiencing historically high temperatures during these, our important winter months.”

Mr Punter said that despite the uncertainty generated by the above events the 2011 result provides encouraging confirmation that PPGL has not only locked in previous efficiency gains but has made further improvements in the cost of doing business.

The board's strategy to refresh the group's core brand, “postie” has strongly improved the chain's impact and full year sales underscored the benefit of investment in key areas of the business.

These included:
• Ongoing capital expenditure related to store refurbishment and store openings.
• Right-sized inventories to match variable market demand in a slower retail sector.
• Effective spend on strategic marketing programmes.

The chief executive officer, Mr Ron Boskell, said PPGL's results concur with a general slowing in consumer spending, exacerbated by natural events.
“We continued to showcase our brand with our store upgrade programme in a competitive marketplace which has enabled us to increase our market share.”

The group opened three new postie stores situated at Rolleston, Feilding and Chartwell (Hamilton) and one new BabyCity location at Lower Hutt.

“We are very pleased with the positive community response to the new stores which have traded well since opening with a range of quality apparel priced right for middle New Zealand families,” said Mr Boskell.

“The school uniform business, Schooltex, expanded its retail footprint in the Auckland region during the year. Our buying power offers New Zealand families a strong range of individualised school apparel and a new range of footwear at attractive prices across 83 postie stores. Customer schools have again benefited from our long-running rebate programme.”

Mr Boskell said “PPGL has had excellent continued good results from customer loyalty programmes which now embraces a strong e-commerce offer to our community of postie, Schooltex and Babycity customers.”

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search