Sales momentum at Postie Plus has slowed down, but the clothing retailer has still seen its same store sales rise by 6.5% so far this financial year.In a trading update released today, the Christchurch-based listed retailer said third quarter sales to Apr
Sales momentum at Postie Plus has slowed down, but the clothing retailer has still seen its same store sales rise by 6.5% so far this financial year.
In a trading update released today, the Christchurch-based listed retailer said third quarter sales to April were up 4.34% on the same period last year to $26.5 million.
While an encouraging sign of growth, it’s down on the rate seen earlier in the year, with year to date sales up 7% to $80.6 million.
At the half way point, sales were up by 8.3% as it reduced its first half loss from $2.7 million to $1.1 million.
Chief executive Ron Boskell said the slowdown of its sales momentum for the first time this year reflected the slow start to winter, but that the company was confident it could maintain growth.
“There is no doubt that the warm, dry autumn weather has played its part during April as every apparel retailer will attest to, however our strong marketing programme and the tremendous loyalty of our customers has ensured good progress ahead of prior years.
“We are pleased that Postie Plus has withstood the challenges within our sector with our national network across metropolitan, regional and heartland New Zealand holding expenses and maintaining good margins and cash flow.
He also pointed out that “unlike some other retailers”, Postie Plus had not made any impairment adjustments because of the continuing impact of the downturn and that all of its assets continued to be in strong shape
Postie Plus is also growing its retail footprint, with two new branches of the Postie specialty clothing chain opening this quarter, bringing the total number of stores to 81.
Mr Boskell said the company was “well prepared” for the final quarter and said the company would remain competitive when winter finally fully arrives and retailers look to clear winter stocks to make way for the new season.
“PPGL anticipates no significant stock overhang at year end and we continue to control this positive position diligently.”
The company’s lightly traded stock (NZX:PPG) has risen two cents to 37c in the wake of the trading update.
