Kirks reports half year profit fall

Kirkcaldie & Stains reported a 41.8 per cent fall in half-year net profit to $482,000. Sales for the six months to the end of February were down 6.2 per cent from a year earlier to $20.9 million.

With the prevailing lack of confidence in the economy, retail demand was low for the entire six-month period, the company said yesterday. The end of season clearance sale was successful with increased volume, which helped achieve a healthy reduction in stockholding.

Markdowns during the latest period were significantly higher than previously, under a deliberate strategy to ensure clean stocks and reduced inventory levels.

Management remained confident of a full year profit similar to last year on the basis that the current level of retail confidence did not further deteriorate, the company said.