Specialty value retailer Best & Less Group has reported a slump in profits as consumer demand softened during the first half.

For the 26 weeks to January 1, sales grew 13 per cent to $324.8 million while tax-paid profit fell 31.8 per cent to $13.7 million.

Like-for-like sales were down 4.9 per cent compared to the previous corresponding period with online sales down 0.9 per cent to $29.8 million.

BLG executive chair, Jason Murray, said the brand’s core non-discretionary and baby product lines continue to perform well though trading conditions were “inconsistent” in the first half. But he is optimistic about the company’s short-term fortunes.

“Despite near-term macroeconomic headwinds, we expect a migration to value and feel confident that the flexibility provided by our vertical retail model will enable us to tightly manage our inventory and costs to deliver our second-half pro forma NPAT guidance of between $18 million and $20 million.”

For the first seven weeks of trading during the second half, sales improved by 3.8 per cent while online sales continues to flounder, down by 23.3 per cent. The company plans to open six new stores in this half.

Earlier this month, former CEO Rodney Orrock stepped down as he continues to make progress in his treatment and recovery from lymphoma.