Profit at Postie Plus Group has slipped despite a slight increase in sales, after tough trading conditions took a bite out of margins.
The the listed retail group, which owns the Postie Plus and Baby City chains, made $415,000 in the year to August, a decrease of 32.5% on the previous year.
The latest result included a one-off deferred tax payment of $157,000.
Sales rose by 3% to $113 million, but chief executive Ron Boskell says he had expected a better result.
However, Mr Boskell says he's confident about the coming year.
Postie Plus is not paying a dividend. Shares were unchanged at 32 cents on Friday.