Home / Knowledge / News / Apparel/Garments / Postie posts profit plus in a very tough market
Postie posts profit plus in a very tough market
30
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

Courtesy: Kai Pilger from Pexels

Apparel/Garments | On 26th Apr 2018

FOBAP in the Philippines trying for garments sector revival

The Foreign Buyers Association of the Philippines (FOBAP), a body...

German investors keen to invest in Pakistan: top official

Textiles | On 26th Apr 2018

German investors keen to invest in Pakistan: top official

A German traders delegation will soon visit Pakistan to explore...

Courtesy: Uster

Textiles | On 26th Apr 2018

Uster Technologies acquires Elbit Vision Systems

Uster Technologies has announced the successful closure of the...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Urmil Arya

Sushila International, a well established textile organisation established ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Robert Brunner
Devereux

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


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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