Wellington-based retailer Kirkcaldie & Stains is warning of a difficult trading year ahead as consumers become accustomed to sale-level prices, but still managed to post a 38.8% leap in interim profit.
The high-end listed retailer – which has b
Wellington-based retailer Kirkcaldie & Stains is warning of a difficult trading year ahead as consumers become accustomed to sale-level prices, but still managed to post a 38.8% leap in interim profit.
The high-end listed retailer – which has been a part of the Wellington central city since 1863 – saw its pre-tax profit rise 38.8% to $1.02 million, while the after tax net profit surged by 50.4% to $725,000.
But that rise comes after a 41.8% fall in the previous year and revenue was still down at the Wellington store, with retail sales for the half year ending February down 5.2% to $19.8 million.
In a statement to the NZX today, the company said the reduced revenue was partly due to a smaller inventory level, which led to fewer markdowns and less product available for the annual sale.
It also warned that retail sales remain subdued as consumers remain cautious about the economic situation.
“We would expect that the year ahead will remain difficult for retail trading, particularly as consumers have become accustomed to ‘sale’ prices.”
In February, it said it would be more than a year before the retail scene recovered.
The overall result from the retail side of the company saw pre-tax profit rise by 20.7% to $716,000.
The property division also saw a pre-tax profit of $393,000, up 73% on the prior year, with much of that lift coming from a reduction in interest expenses which saved the company $145,000 over the six months.
The interim dividend has been kept level at three cents a share and will be paid on May 17.
Shares in the retailer (NZX:KRK) are not heavily traded, with most held by Wellington-based customers and employees since it was floated in 1995,
While the share price has been sitting between the $2.70 and $3 marks since the start of the year, it currently trades at $2.85, up 26% over the past 12 months.
