Sharechat Logo

Hallenstein Glasson finds retail demand tightening

Tuesday 7th December 2010

Text too small?

Clothing retailer Hallenstein Glasson Holdings found retail demand tightening in the past two months.

Chairman Warren Bell told the company's annual meeting today that the first two months of the 2011 financial year, starting August 2, had growth of 5%.

But that improvement had been eroded so that sales for the whole August to November period were now flat compared to last year.

In Australia, the environment was becoming increasingly competitive, and a recent lift in interest rates was followed by an immediate dampening of consumer demand.

"The market is extremely competitive and margins are being put under pressure as competitors discount stock to retain market share," Mr Bell said.

In this country, demand peaked before the October 1 rise in GST, and then gradually fell away.

As in Australia, the company was having to compete aggressively to maintain market share.

"The momentum achieved over the past year will be extremely difficult to maintain, and the opportunity to further improve sales and margin on the existing business base is now far more challenging."

The December trading period was a significant proportion of the summer season and any projection at this stage would be premature. A further update would be given after the Christmas trading period.

For now Hallenstein Glasson's profit was marginally ahead of last year, but December was the "make or break month".

For the year to August 1, the company reported a 59.7% rise in earnings before tax on normal business activity to $29.2 million, on group sales up 4.5% to $207.1 million.

 

NZPA



  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:

Synlait Special Shareholders' Meeting Poll Results
SML receives update on a2MC voting intention
PHL - Opening of Share Purchase Plan offer
ATM - Synlait Special Shareholders' Meeting - a2MC voting update
APL - AGM Date and Director Nominations
COOKS COFFEE COMPANY ANNOUNCES NEW UK BASED BOARD MEMBERS
July 11th Morning Report
PEB - Cxbladder Test Volumes Steady in Q1 25
THL - Resignation of Director update
NPH - Third Quarter 2024 Trade Volumes