Postie Plus narrows first-half loss

Postie Plus Group chief executive Ron Boskell. File photo

Postie Plus Group, the clothing retailer whose chief financial officer departed last month, narrowed its first-half loss after increasing sales.

The shares gained 3.7 per cent.

The Christchurch-based company made a loss of $750,000, or 1.87 cents a share, in the six months ended January 30, compared to a loss of $1.1 million, or 2.79 cents, a year earlier.

Sales rose 4.6 per cent to $56.5 million.

Consumers have eschewed spending over the past 18 months, preferring to repay debt and focus on savings.

That's kept retailers on the back foot, with clothing chain Hallenstein Glasson Holdings yesterday posting a 17% drop in earnings while Warehouse Group has struggled to attract consumers.

"Gross profit margins have been maintained in a highly competitive market," chief executive Ron Boskell said in a statement.

"Market share continued to increase."

The stock rose 1 cent to 28 cents today and has dropped 3.6 per cent this year.

No dividend was announced.

Postie Plus said three of its Christchurch stores are still closed after last month's 6.3 magnitude earthquake, which killed more than 180 people and caused some $15 billion of damage, and their future is uncertain.

Lost profits are covered by business interruption insurance, the company said.