Postie Plus says it expects significant loss in 2013 earnings as full-year sales fall 10.5 percent
Postie Plus Group [NZX: PPG], whose shares are the worst performers on the NZX this year, said annual sales from continuing operations fell 10.5 percent and reiterated it faced a "significant" annual loss because of problems with its outsourced distribution centre and difficult trading conditions.
Sales from continuing operations fell to $84.2 million for the 52 weeks of this year, down from $94.1 million in the 53 weeks last year, the clothing retailer said in a statement. Postie Plus expects to report a significant loss in annual earnings on Sept. 27, the company said.
Shares in Postie Plus were unchanged at 13 cents and have slumped 46 percent so far this year.
Postie Plus is in talks with potential investors and its bank about raising more capital, the company said. The retailer has been dealing with problems at its outsourced distribution centre, burning through cash and breaching its banking covenants in the process.
Last year Postie Plus outsourced its distribution systems and processes to a purpose-built centre in Mangere as part of its shift to Auckland, where it saw greater opportunities.