NZX/Media Statement 31 August 2012
Flagship Apparel Brand Holds Sales Level in Slow Retail Market
PPGL Annual Sales
Sales
F12
F11
($'000)
($'000)
Postie
94,001
93,778
Babycity Sales
16,906
21,952
110,887
115,730
New Zealand’s favourite clothing retailer, Postie, the core brand of Postie Plus Group, ended the 2011-12 year with
sales on par with the previous year despite a flat apparel sector.
“The solid performance by Postie supports our decision to sell the low margin Babycity hardware chain. We want to focus
on building the higher margin, flagship Postie brand and expanding our nationwide retail footprint through acquisitions
in the future,” Group CEO Ron Boskell said.
As a result of lower Babycity sales, Group sales for the year ended August 5 2012 were down by $4.8 million or 4.36 per
cent to $11o.9 million. Babycity sales’ slippage was due to the business being sold during May as part of the strategy
to build the business into a modern, exciting retailer, double in size, with Postie stores located conveniently around
the country and an appealing on line presence.
The sale of Babycity has left PPGL in a position to pursue acquisitions of compatible, value adding brands.
The Group, which is due to report its full year results on September 24, is continuing to lock in efficiencies and lower
the cost of doing business. In the next few months the move to a new outsourced national distribution centre in Auckland
will be completed. Postie’s merchandising, planning and marketing functions, under newly appointed GM Postie, Jane
Gammon, will move to Auckland in January 2013.
Mr Boskell said Group expenses were continuing to be well managed, offsetting the protracted flat sales trend in the
apparel sector. Postie’s focus on providing fashionable attire at prices families could afford, left it competitively
placed to take advantage of the eventual recovery.
ends