Clothing retailer Postie Plus reported a full year net profit of $615,000, edging back into the black from a $10.85m loss the year before on "a very good second half recovery".
The company, whose brands include Postie+, Schooltex and Baby City, today said sales revenue from continuing operations in the year to August 2 rose 2.5 percent to $110.38m.
Chairman Peter van Rij said that since the balance date momentum had continued with further improvement in sales compared to 2008.
"While our investment in store development is indicative of our underlying optimism, market conditions remain challenging with any recovery in consumer confidence likely to take time," Mr van Rij said.
Postie Plus aimed to minimise the extent of its customary first half loss and expected to maximise its earnings in the second half.
"Given the early stage of the recovery and the need to conserve capital, the board will not declare a dividend for the year. The restoration of shareholder value is a primary objective of the board." Managing director Ron Boskell said the turnaround followed a 12.6 percent rise in fourth quarter sales.
During the year the retail sector faced the challenge of much slower consumer spending, but in that difficult business climate the company had gained market share.
At balance date, the group had 79 Postie+ apparel stores and 24 Baby City children's wear and equipment stores.
Mr Boskell said the group had trimmed costs within continuing operations by 5.5 percent overall and with a material reduction in distribution costs of $1.7m or 19.7 percent to $6.95m.
A debt reduction programme and lower interest costs on faster moving stock cut net financing costs by 28.6 percent to $1.2m, while a focus on capital management in all areas led an improvement in working capital of $3.3m.
The turnaround gathered speed last Christmas, with the company hitting targets during the important months of December and January.
In each subsequent quarter sales performance improved, Mr Boskell said.
Postie+ had worked its way through the recession without sacrificing margin more than necessary, while product had changed to reflect the contemporary market.
A new concept store opened in Botany, Auckland, this week, and another would open in Westfield Manukau later this quarter.
Baby City's market share had grown through an increasingly wider offering to a growing market.
