Postie Plus made a $615,000 profit in the year to August, a turnaround from the retailer's $10.8 million loss the previous year.
The company, whose brands include Postie Plus, Schooltex and Baby City, says it is a pleasing result in the face of an economic recession.
Sales were up 2.5% to $110 million during the year, with fourth quarter sales up 13% on the previous year.
The company says the sales and earnings results, growth in market share and gains from restructuring put the business in a strong position for the summer.
But Postie Plus will not declare a dividend for the year, given the early stage of the recovery and the need to conserve capital.