Postie Plus Group, apparel and nursery equipment retailer, has posted a pre-tax profit of $781,000 for the year ending August, a fall of 6.5 percent from last year.
The result reflected flat consumer spending patterns, the company said.
Deteriorating fourth quarter sales and "the need to meet a very competitive market by reducing margin" led to the fall in pre-tax profit, chairman Peter van Rij said.
However revenue increased by 3 percent to $113 million in a "difficult retail environment".
Mr van Rij said it had been a "difficult year" but Postie had continued to increase its share of the apparel market.
Following an adjustment for deferred tax of $157,000, its net profit of $415,000 compared with $615,000 last year.
"It is important that investors appreciate that this adjustment is of a non-cash nature and does not affect the operational performance of the company," Mr van Rij said.
Postie would not pay out a dividend this year, Mr van Rij said.
Chief executive Ron Boskell said the current year began on a "more satisfactory note" with August producing stronger performance data.
"Whilst it is early days, we saw a combination of good results from the new spring season's fashion offer and some delayed sales from the winter period," he said.
The company was refurbishing 45 Postie stores, which would be a combination of refits through to logo changes.
The changes would ensure Postie made a "high-impact transition to a more contemporary look", Mr Boskell said.
Postie's Schooltex uniforms business would also expand, following its purchase of Auckland-based school uniform provider Uniforms Plus which supplies about 55 Auckland schools.
The group's uniforms business would include a new entity trading as Uniform Solutions, he said.
Postie closed at 32c yesterday and ranged from 28c to 45c in the past year.
During the year Jan Cameron, a founder of retailer Kathmandu, upped her stake in Postie Plus, to 19.26 percent.