NEW ZEALAND: Postie Plus swings to full-year loss
New Zealand-based retailer Postie Plus has swung to a full-year loss on the back of a series of one-off costs including to the sale of its Babycity brand and a new distribution centre.
The company recorded a NZ$182,000 (150,749) net loss over the year to 31 July against a $656,000 profit in the prior year. Excluding the one-off costs, net profits would have reached $493,000. Sales were down 4% over the prior year to $111m.
Company chairman Richard Punter said the performance reflected the group's decision to push ahead with restructuring to focus the business on extending the Postie brand, "in order to be competitively positioned when consumer confidence recovered".
In May, the company announced plans to sell the Babycity chain for $4m in order to focus on its core operations.
"We took the hit now with costs associated with the sale of Babycity which no longer fitted our business model and the decision to recruit new retail expertise, outsource our distribution systems and processes to a new purpose-built centre at Mangere airport and begin a progressive shift of key marketing and other functions to Auckland," Punter added.
Company CEO Ron Boskell is set to leave the company in January. He said: "We're seeing a pick-up in on-line sales, generated by our rewards programme and also new season collections that have something for all the family at affordable prices."
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