Close to 50% drop on pcp.

Godfreys net profit after tax (NPAT) was $2.3 million for the half year ended 30 December, 2016, down from $4.5 million for the previous corresponding period. Sales for the period were $92.4 million, an increase of 2.8% with comparable store sales down by 7%.

During the period, Godfreys opened four stores and closed three ending the period with 223 stores across Australia and New Zealand. The strategy to move to a majority franchise model announced in October 2016 is underway with the company on track to deliver 18 store conversions to franchise stores for the 2017 financial year.

Commenting on the results, Godfreys CEO John Hardy said, “While the financial performance for the half was disappointing, I am pleased by the progress we have made in improving fundamental areas of the business; these changes have set the foundation to restore Godfreys financial performance to acceptable levels.”

“Our initial priorities have been to address gaps in our product range; realign our marketing strategy; improve store presentation; and enhance the training of our sales team. During the half, we made solid progress in these areas, particularly in terms of realigning the product range and we now expect to have this largely in place by May,” he added.

Trading conditions are expected to remain difficult in the second half until the benefits of the changes being made flow through to improved financial performance.