Smith City result 'satisfying'

Smith City Group made a first-half profit after tax of $1.018 million but sales revenue also fell 6.2 per cent on last year amid "soft" consumer confidence.

When a $1.059m paper loss on foreign currency hedging was taken into account, profit was reduced to a $41,000 loss.

Chief executive Rick Hellings said the profit for six months ended October 31, up 23 per cent from $820,000 for the same period last year, was satisfying in a difficult trading environment.

"In normal trading conditions we wouldn't be very happy but it's not normal at the moment."

While sales revenue for the half year fell from $114.2m to $107.1m, savings were made in administration and distribution.

Same store retail sales declined 4.5 per cent.

But Mr Hellings said good signs in October were followed by a weak November and lower revenues on Christmas shopping.

Smith City was retaining market share, which it would add to through a push into the North Island, which began with the opening of a Porirua store this month.

- © Fairfax NZ News