Postie Plus lifts third quarter sales

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Clothing retailer Postie Plus Group says market share growth helped third quarter sales grow in a tough market after a successful market campaign.

The company's quarterly sales rose 4.8 per cent to $29.6 million, while same-store sales, sales through stores open 12 months or more, rose 3.4 per cent in the three months ended April.

"The refresh of the Postie stores and new-look marketing featuring Jayne Kiely and Ruby Higgins have made an impact across New Zealand," chairman Richard Punter said.

The company's Babycity stores are also showing growth in new segments.
Postie Plus has 106 Postie and Babycity stores nationwide.

The latest quarter's result took sales for the nine months ended April to $86.2 million, up 4.6 per cent on the same nine months a year earlier while same-store sales were up 3.6 per cent.

Stores in the Christchurch region made solid gains on last year, even though three of its stores still remain closed following the February 22 earthquake. Those stores are expected to reopen in July or August.

"The remaining three months of the financial year are a major profit contributor for the group and we are looking forward to a strong finish," Punter said.

"We cannot predict the end of year result as the market remains volatile. However, with stock levels under control and within the budgeted plan, we remain confident that we will see an improvement on last year's result," he said.

The company reported a loss of $800,000 for the six months ended January, down from a $1.1 million loss in the previous first half.

Postie Plus was barely profitable in the two years ended August 2010 - it reported a $400,000 net profit in 2010 and $600,000 in 2009 and that followed a $10.9 million net loss in 2008.

Postie Plus shares closed yesterday at 24 cents, their lowest level in a year. They have been steadily trending lower since hitting 45 cents in late 2009.