Postie Plus first-quarter sales down
Postie Plus's first-quarter sales have dropped 14 per cent compared to the same period last year as it continues to feel the impact of this year's distribution woes.
The listed clothing retailer's sales for the first three months of trading were down $2.7 million to just under $16m.
The company improved gross margin for the first quarter, it said in a brief market announcement this morning.
Postie Plus continued to feel the impact on sales from its loss of market share earlier in the year, the company said.
Expenses for the period were in line with last year.
Last week Postie Plus said it intended to sell its school uniform business for $9m.
The move comes after the company recorded a loss of $13.2m last month for the year to August.
Postie Plus indicated in its annual report that it wanted to raise capital and reduce debt.
The company's annual net loss was $1.5 million more than originally stated in September.
Postie Plus chairman Richard Punter said the main reason for the increase in loss between the annual report and the preliminary full-year results was the finalisation of the company's inventory resulting in an additional inventory writedown of $1.4m.
When the company released its full-year results at the end of September it blamed problems with its new Auckland distribution centre run by a global logistics company for the annual loss.
The company said it would be seeking redress for its losses from the third-party provider running the distribution centre, global transport and logistics company Kuehne & Nagel.
Postie Plus's problems have resulted in it asking its suppliers to extend trading terms.
Its banks were still supporting it, though it has breached several covenants.
The company's shares last traded at about 9 cents, 59.6 per cent lower than a year ago.
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