Smiths City's half-year profit has slipped by more than a fifth, as the Canterbury earthquake and bad weather dented consumer confidence.
The retailer made a profit of $790,000 in the six months to the end of October, 22% less than in the same period last year.
Revenue fell almost 3% to $110 million.
Smiths City chairman Craig Boyce says trading conditions improved slightly over the winter months but worsened considerably in the second quarter.
Mr Boyce says consumer confidence was hit by the Canterbury earthquake, the receivership of South Canterbury Finance and the unseasonal snow in Southland.
Big-ticket markets were also affected by the rise in GST.
Mr Boyce says trading improved in November but the market remains very fragile and competitive and heavy discounting is putting pressure on margins.
