Sharechat Logo

Hallenstein Glasson expecting a better first-half

Wednesday 8th February 2012

Text too small?

Hallenstein Glasson, the clothing retail chain, expects first-half earnings to be a quarter higher than last year, and plans to put more emphasis on its digital store strategy.  

The Auckland-based company’s net profit was between $8.7 million and $9 million in the six months ended Feb. 1, with sales up 7.9 percent at $108.6 million. It plans to release its complete results on March 28.

Record Christmas sales and a strong January underpinned the chain’s New Zealand performance, and while there were improvements in across the Tasman, “there is still some way to go in Australia before we can return to a level of profitability acceptable to the board.”

The retailer is reviewing its store portfolio as shopping centre landlords continue to lift rents annually, and wants to grow its online presence.

“Strong progress has been made over the past six months in growing our sales on the internet,” the company said. “We will continue to give strong focus to our digital stores which will clearly become an increasingly significant part of the business.”

Like other retailers, Hallenstein has had to contend with tepid consumer demand as households focus on repaying debt. That’s forced stores to discount prices in a bid to bring customers in.

The chain’s Glasson sales rose 7 percent in New Zealand and 13 percent in Australia, while Hallenstein sales gained 5 percent. Storm brand sales advanced 26 percent, and were up 7 percent on a same-store basis.

Hallenstein’s gross margin on sales rose to 57.1 percent from 56.6 percent in the prior period.

The shares fell 0.3 percent to $3.55 in trading yesterday, and are up 1.7 percent this year.

(BusinessDesk)

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Hallenstein shares fall as margin squeeze pushes annual earnings near bottom of guidance
Hallenstein annual profit falls 11 percent as Glasson margins come under pressure
While you were sleeping Wall Street, Wal-Mart drop
Hallenstein forecasts up to 12 percent drop in FY profit after slow start to winter
Hallenstein Glasson lifts 1H profit 15 percent, sales lag as weather stays warm
Hallenstein Glasson 1H profit climbs 15 percent on 'robust' NZ sales
Hallenstein says sales rose 7 percent in first 4 months
Hallenstein says FY profit rose as much as 14% on sales, insurance
Hallenstein Glasson 1H profit rises 27%
Hallenstein Glasson Holdings