Postie Plus is determined to produce a profit in the next half year after steadily reducing its losses.
The clothing retailer recorded a net loss of $750,000 in the six months to the end of January, a 32% improvement on the same period a year ago where it lost $1.1 million.
The reduction in loss was achieved by stronger sales and savings in distribution costs.
Chief executive Ron Boskell says retail trade conditions continue to be difficult, and it is important to be cautious about expectations.
He says he's hoping to move the loss into a profit in the next half, but cannot say what that profit is likely to be.
Mr Boskell says Postie Plus is attracting a wider customer base than previously.
He says a sales increase is coming out of Baby City and Postie Plus.