Clothing retailer Postie Plus, famous for its brands such as Postie+, Schooltex and Baby City, seems to have come out of financial trouble, reporting a full year net profit of $615,000. The firm, having 79 Postie+ apparel stores and 24 Baby City city stores, reported a 2.5 per cent increase in its sales revenue by August 2 to $110.38m.
Peter van Rij, the Chairman of clothing retailer, said: "While our investment in store development is indicative of our underlying optimism, market conditions remain challenging with any recovery in consumer confidence likely to take time."
The firm, which faced challenges from decline in customer spending, successfully minimized its loss for the first half of the current financial year and aims to increase its revenue for the second half. The company is unlikely to announce dividend for the year, as it is currently under early stages of recovery and needs capital for strengthening its balance sheet.
The firm’s cost cutting measures worked well for the year, trimming continuing operation costs by 5.5 per cent and distribution costs by 19.7 per cent. Financing costs were also reduced by 28.6 per cent to $1.2m, and the firm reported sales improvement in each subsequent quarter.