Archive | Postie Plus

Postie Plus sales bounce back

Published 2 September 2009

Nationwide retailer Postie Plus Group Ltd said yesterday it bounced back in the third & fourth quarters from sales declines in the first half.


The result for the year was a 3% increase in sales from continuing operations, to $110.4 million.


The quarterly returns were: Q1 $19.9 million (down 8.8%), Q2 $30 million (down 2.3%), Q3 $25.4 million (up 7.3%), Q4 $34.9 million (up 12.9%).


Managing director Ron Boskell said the group increased both sales & margins during the fourth quarter (to July), “indicating the product range was what the market wanted. The success of winter is attributable to, amongst other things, our new offering, more fashion, better fits & improved quality.”


Postie Plus will release its full-year results late this month.


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Attribution: Company statement, story written by Bob Dey for the Bob Dey Property Report.

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Postie Plus now forecasting half-year loss

Published: 17 January 2005

Postie Plus Group Ltd said in December wet & cold weather had affected sales, and said that after the weather stayed bad through the Christmas-Boxing Day sales periods it would make a small loss for the first half, to 31 January.

Its forecast now is for a $700,000 loss on $54 million sales. Full-year profit would fall from $3 million last year to $2.3 million on sales up from $108.5 million to $113 million.

Postie Plus’s bad summer has turned it into a greater advocate of malls than Westfield – directors said the company was more affected by bad weather than other chains because few of its stores were in malls. Even so, the board’s main answers to the company’s problems are a restructuring to make the business simpler and cutting of overheads.

It sees the bad summer as a one-off, so a rush to rent space in malls isn’t on the immediate agenda.Sales have been increased by the addition of new stores. Same-store sales for the January half will be down.

Postie Plus chairman Peter van Rij said summer returns fell as retailers tried to clear excess stock, particularly in the very competitive manchester market.

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Postie Plus suffers from the cold

Postie Plus Ltd managing director Paul Young said continued wet & colder weather had significantly impacting summer season sales and group profit for the year would be down on last year.

Mr Young said the current high level of discounting & some price deflation were also having an impact, but to a lesser extent. As most of the group’s branches are outside malls, he said the weather had possibly impacted Postie Plus more than some other clothing retailers.

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Postie Plus to turn Gardner Fashions stores into Rendells

Acquisition will add $½ million to 2005 profit

Postie Plus Group Ltd has entered into an unconditional contract to buy up to 10 of the Gardner Fashions Ltd clothing retail outlets.

Postie Plus group managing director Paul Young said Gardner Fashions was a longstanding profitable North Island clothing retailer and the acquisition was restricted to assignment of leases and the purchase of the relevant branch fittings & leasehold improvements, some stock and the employment of a number of Gardner Fashions retail staff. Postie Plus will take over the new sites between March-September 2004.

“The delayed takeover is to allow time for the group to focus on integrating the recent acquisitions of Arbuckles and Rendells and to provide planning time for the new shops,” Postie Plus group managing director Paul Young said.

These new shops will re-open as Rendells Ladieswear Fashion stores. Rendells is a well established mini-department store which has been operating in the Auckland market for more than 120 years and has a strong focus on women’s clothing. It will increase the number of Rendells stores to 17.

Mr Young said the impact of the acquisition on 2004 group profit should be minimal, but the new branches should contribute about $500,000 more profit before tax in 2005.

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Postie Plus signals higher costs for long-term gain

Clustering of group’s shops proves success

Listed retailer Postie Plus Group Ltd said 1st-half revenue & margins were generally in line with prospectus forecasts but full-year earnings will be affected by the performance of Rendells & costs associated with accelerating the standardisation & integration of the different businesses’ computer systems & support functions.

“While higher costs will have some effect on aftertax earnings for the full year, we are currently sufficiently confident in the benefits that will flow from these initiatives and we expect to make dividend payments close to the prospectus level, assuming 2nd-half sales are in line with forecast,” managing director Paul Young said.

“While revenue was slightly below expectations, margins are slightly above forecast, demonstrating the synergistic benefits available to the group through our sourcing & logistics competencies.

“In respect of each chain, Postie Plus is tracking well, Rendells was affected by some sourcing & other issues that have since been addressed, and Arbuckles performed reasonably in a market characterised by very high levels of promotional & discount activity by competitors. Baby City is tracking in line with expectations.

“The company’s recent strategy of situating its shops in internally connected clusters, which enables customers to move between stores, has proved successful in Invercargill, Addington & Fraser Cove in Tauranga, and this strategy will be continued with future store rollouts where possible.

“To facilitate this strategy, the group has decided to bring forward and more closely integrate its different businesses by standardising point-of-sale systems, back-office systems, supply chain & support functions. This will result in a higher level of capital expenditure, depreciation, interest & restructuring costs in the current year than indicated in the prospectus, but will result in significant benefits within 12 months,” Mr Young said.

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