Christchurch-based family apparel retailer Postie Plus Group has reported a 30.5% drop in full year profit to NZD2.73m (US$2.02m), compared with last year's NZD3.93m.

The company's sales rose 8.5% to NZD136.64m in the year ended 31 July 2007. The second half saw sales increase to NZD71.2m, up 5.13% on 2006.

Same-store sales for the year were ahead by 2.95%.

The company attributed the lower annual result to a first half loss of NZD0.49m, higher stock management costs and expenditure on infrastructure and brand development.

Postie Plus chairman Mr Peter van Rij said: "Restructuring initiatives aimed at mitigating inventory build-up, and the benefits of the new SAP retail management system will assist the company going forward.

"Consumer confidence has taken several dents during the year from higher interest rates, higher food costs, increased energy charges and fluctuating fuel prices.

"We are very pleased, therefore, to report that the Postie Plus Group is achieving positive trends in gross margin and gaining its share of the apparel market."