Postie Plus Group Ltd has experienced a slowdown in sales in May and June, but remains optimistic and says it is outperforming other apparel retailers.The company 18 percent owned by Kathmandu founder Jan Cameron operates Postie Plus and Babycity stores.I
Postie Plus Group Ltd has experienced a slowdown in sales in May and June, but remains optimistic and says it is outperforming other apparel retailers.
The company 18 percent owned by Kathmandu founder Jan Cameron operates Postie Plus and Babycity stores.
In an update on sales as at the end of April the company was achieving a 7 percent increase on the previous year. Today it said sales growth for year end, which is four weeks away, is expected to be 4.5 percent.
Chief executive Ron Boskell said a slow down in May was seasonal and due to warm weather. Mr Boskell did not think it suggested a slow down in the wider economy.
"When it is warm people do not buy thermals and fleece. Money might have gone onto a book or televisions, we don't know," he said.
He said May last year was cold and sales had risen 22 percent. The company was chasing a strong year-ago number.
"We have been very happy with sales. We've already seen a return this week to very good sales," he said.
Sales in the month of June were up 2 percent on a strong year-ago figure.
The company has been telling shareholders for some time that it has reduced costs, improved its marketing, invested in better fitting and appealing apparel and is managing stock better.
"Stock is not a major concern as this has been managed throughout the year," Mr Boskell said.
The company was very optimistic about the 2010/11 year as it continued to open new stores and refurbish existing stores.
It had a net loss of $1.1 million in its first half on an 8 percent increase in sales. The loss was down from a $3.1m loss in the same period the previous year. The company's financial year finishes on August 1.
In May the company reported third quarter sales to April of $26.532m, which was up 4.34 percent on last year.
Australian retail sales growth weakened in May to the slowest pace in three months in data released yesterday.
