Postie Plus 3rd-quarter sales from continuing ops fall 14 percent on stock disruptions

Postie Plus Group, the clothing retailer whose shares have fallen 29 percent this year, said third-quarter sales fell 14 percent after seasonal stock was disrupted by problems at its third-party distribution centre.

Sales from continuing operations fell to $19.4 million in the February-to-April quarter, from $22.6 million in the same period a year earlier, the Auckland-based company said in a statement. The gross margin also fell in the latest period, it said, without giving details.

“Third-quarter sales and margin results have been impacted by the level of Autumn stock in our stores, due to inward and outward constructions at our third party distribution centre,” the company said. “As previously forecast, the impact of supply of stock to stores on sales and margin ill result in a significant loss for the year.”

The retailer has been dealing with problems at its outsourced distribution centre, burning through cash and breaching its banking covenants in the process.

Last year Postie Plus outsourced its distribution systems and processes to a purpose-built centre in Mangere as part of its shift to Auckland, where it saw greater opportunities

The shares rose 3 percent to 17 cents.

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