Postie Plus 1st-qtr sales rise 15%

Postie Plus posts 15% gain in 1st-qtr sales, predicts smaller first-half loss

By Jonathan Tringham

Nov 23. (BusinessWire) – Postie Plus Group Ltd., a clothing and baby-ware chain 18% owned by Kathmandu founder Jan Cameron, has posted a 15% increase in sales in the first quarter, putting it on track for a narrower first-half loss.

The increase in sales for the quarter ended Oct. 31 indicates the company is “on track to reducing the loss that has customarily occurred for PPGL in the first half-year,” said chief executive Ron Boskell, in a statement. The retailer reported a $2.6 million loss in the first half of last year.

Postie Plus boosted cash flow, lowered stock levels and streamlined distribution by consolidating business units under one roof in Christchurch, allowing the retailer to squeeze down on costs. The restructuring delivered control over inventories enabling a faster and cheaper distribution overall.

“As a result of these ongoing initiatives and improvements, we are well equipped, well positioned and on track to post better results for the first six months than last year,” Boskell said.

Shares of Postie Plus gained 2.6% to 40 cents on the NZX today and have gained 11% in the past three months.

The increase in sales follows a “good” second half of the 2009 year, when the company recorded 9.7% lift in sales, he said.

(BusinessWire)