NEW ZEALAND: Postie Plus issues profit warning
New Zealand retailer Postie Plus Group Limited today (1 August) warned that aggressive restructuring and extremely difficult trading conditions in the second half this year will result in a full year trading loss of between $6.5m and $7.5m.
It added that the sale of its loss-making Arbuckles homewares chain, which was agreed yesterday, will lead to a one-off write-off loss of $2.4mto $2.6m relating primarily to goodwill.
The trading loss includes costs relating to initiatives announced in November which will improve financial performance in future years, the company said.
These include the relocation of its Westport distribution centre to Christchurch, costs savings at its head office, the closure of non-performing brands, and a NZD14m (US$10.2m) reduction in stock levels.
Chairman Peter van Rij said the company has had to take some hard decisions to reposition the Postie brand for future success into the rapidly changing retail environment.
Despite the poor result the company has retained market share and also maintained good cash flows, he said, which is important in difficult trading conditions.
Clothing retailer Postie Plus Group today (28 November) said it expects to deliver a modest profit in its current financial year, but is not making projections about trading over the key holiday perio...
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