New Zealand's largest listed retailer, The Warehouse, has made a $57.4 million profit in the six months to the end of January.
The result is a rise of more than 17% on the same period the year before. However, that result included a $7.4 million cost of getting out of liquor sales and dumping its grocery concept Extra.
In the six months to January, sales fell 1.5% to $834 million in the period overall, although at Warehouse Stationery same store sales climbed more than 11%.
The company says sales have improved in some categories, but not by enough to offset losses from ending food and alcohol sales.
Chief financial officer Luke Bunt says he expects the market to remain difficult for the rest of 2010.
The company is paying a slightly increased dividend of 17 cents a share and expects to make a full-year profit similar to the $76.9 million it made last year.
The Warehouse closed down 36 cents in Friday trading, to $3.86.