Kirkcaldie & Stains does not expect the retail environment to recover for another 12 to 18 months.
The high-end Wellington retailer says sales are down by more than $2 million in the current financial year. Sales in the five months to January were down by more than 2%.
Managing director John Milford says the company will now focus on stock control and maintaining its 42% profit margin, as well as an aggressive promotional plan to boost market share.
Mr Milford says there will also be a focus on growing top line sales. Kirkcaldies recently secured new brands such as Mimco fashion accessories and designer watch and sunglass brands including Fossil, Burberry, Emporio Armani and Gucci.
Despite this, Mr Milford says the current financial year will be difficult and it is forecasting a half year pre-tax profit of almost $1 million - a slight improvement on the $731,000 it made in the same period last year.
The full year result is likely to be similar to last year's, at about $1.53 million.
