Home / Knowledge / News / Apparel/Garments / Decline in net earnings at Postie & Babycity
Decline in net earnings at Postie & Babycity
28
Mar '12
The continued volatility in consumer confidence in New Zealand is reflected in an almost unchanged trading performance by the apparel retailer Postie Plus Group Ltd (PPGL) during the company's opening six months of the current year.

The trading period ending 29 January 2012 had sales of $53.92m which was down $2.6m, or 4.6% compared with last year.

A strong commitment by management to internal efficiencies and a positive effort by sales staff in the group's two national retail chains, Postie and Babycity, have kept the decline in net earnings to a loss of $0.77m compared to $0.75m last year.

Given the continuing hesitancy in retail generally, we are pleased to have held the overall result close to the same period last year - said Mr Richard Punter, chairman.

- Importantly, we have left behind the large first half losses that previously marred our results and we look to continuation of profitability for the full year.

- Gross profit was $28.65m, compared with $29.29m in the prior corresponding period. Earnings before interest and tax was a loss of $0.69m, compared with a loss of $0.62m last year.

- Whilst we are dissatisfied with a first half loss, we recognise the importance of clearing our winter seasonal apparel each spring, said the chief executive Mr Ron Boskell.

- This is usually followed by profitable trading in the second half year.

- Despite the challenging environment, our core businesses are in excellent shape for the forthcoming all-important winter season. Our focus on costs has once again been a strong feature of our performance, with expenses down $458,000 or 1.5% and inventories are well under control.

- The Postie chain of 81 stores is performing well, including all of our Christchurch stores. Our Postie upgrade programme continued during the period and we continue to see a positive response from customers to the refreshed stores.

PPGL closed four Babycity stores in marginal locations during the period and has since closed a further two stores. This reduced the number of Babycity stores to 18 - Mr Boskell said

We have continued the development of our online retail business. PPGL is pleased with the increasingly strong market positions held by our retail web sites for Babycity, Postie and Schooltex.

The significance of a strong winter season to our annual result is well understood and management and staff will be striving to extract the higher volume and value of sales on which a second half profit is based and I can report that the group overall has made a good early start to the new season, said Mr Punter.

Postie Plus Group Ltd (PPGL)


Must ReadView All

Textiles | On 20th Aug 2017

PetroVietnam, Vinatex discuss reviving PVTEX plant

Discussions are under way between PetroVietnam and textile and...

Courtesy: Mexx

Fashion | On 20th Aug 2017

RNF acquires Mexx fashion brand

RNF, the Dutch sports and fashion holding, has purchased the global...

Textiles | On 20th Aug 2017

Intertextile Shanghai Home Textiles opens on August 23

Intertextile Shanghai Home Textiles, Asia’s leading platform to meet...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Suresh Patel
Sidwin Fabric

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

August 2017

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
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

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
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

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
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

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
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


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