Postie Plus says result will improve
Struggling national clothing retailer Postie Plus has signalled its loss this year will be lower than the previous year's $10.6 million loss.
Chief executive Richard Binns told the market today that sales for the six months to February 3 had fallen 9.9 per cent to $39m compared with $43.3m for the same period the year before.
Its half-year result would be released by April 1.
The company's recovery plan was starting to bear fruit with new marketing initiatives and programmes resulting in a lift in margins, he said.
At the end of February the company had completed the sale of SchoolTex to The Warehouse and used the $9m payment to reduce debt. The company's bank has extended its borrowing facilities until July and had reserved its rights in relation to previous covenant breaches.
Binns said he was pleased with the company's progress. The first phase was reducing overheads and the company was now removing products that were slow to sell.
It was improving its clothing, health and beauty product ranges and investigating complementary product lines.
"We expect to see the benefits of these initiatives in the coming seasons," Binns said.
"Postie has a vision to provide everyday style to New Zealand women. There is still a lot of work to do but we are making good progress."
- Fairfax Media