The profit was an increase of nearly 13% on the $1.7 million reported in the previous corresponding period (pcp).
Earnings before interest and tax (ebit) rose 37.4% to $1.1 million and the reported profit was up 58% to $656,000, compared to $415,000 in the pcp.
However, the comments of company executives were not as positive as the finances indicated.
Chairman Richard Punter said the trading year had distinct promise of a solid year with the group's core brand "postie" yet again making market share gains in a sector that has been flat for two years.
"However, the ongoing economic uncertainty has seen consumers inclined to commit more to savings than to personal spending on clothing."
The financial year had had more adverse events than most years in the company's history with a sequence of natural disasters and historically high temperatures in May and June coming during important winter-month trading, he said.
Despite the uncertainty generated by those events, the result provided encouraging confirmation that the group had not only locked in previous efficiency gains but had made further improvements in the cost of doing business.
The board's strategy to refresh the "postie" brand had strongly improved the chain's impact and full-year sales underscored the benefit of investment in key areas of the business, Mr Punter said.
Chief executive Ron Boskell said the financial results concurred with a general slowing in consumer spending, exacerbated by natural events.
Gross profit as a percentage of sales for the year was 52% compared with 53.18% in the pcp, indicative of the discounting required to achieve a clean inventory before the end of each season. It also reflected the unusual sales fall in May and June felt across most of the retail sector.
The year-end inventory at $23.4 million included the stocks of school product acquired earlier in the year and was slightly lower than that of the previous year, Mr Boskell said.
At balance date, the group had total current assets of $25.5 million and current liabilities of $11.57 million. Total assets were $37.3 million, term debt was $8.6 million and the company's gearing was 22.9%.
