Hallenstein Glasson expects 13-18% fall in net profit

Wednesday 26th January 2011

Clothing retailer Hallenstein Glasson Holdings is expecting a fall of 13 to 18% from a year earlier in net profit for the half year to February 1.

Chief executive Stephen Timms said the Hallensteins menswear operation and the fashion and price-focused Storm stores had performed above the year before during the key trading months of December and January to date.

But trading was difficult for women's fashion operation Glassons in this country and Australia.

"Intense competition for market share had been a feature of the women's fashion market on both sides of the Tasman," Timms said today.

The group said net profit after tax for the six months to February 1 was projected to be in the range of $7 million to $7.4 million, a fall of 13 to 18% on the $8.55 million a year earlier.

Group sales for the latest half year were projected at $100.62 million, down 1.6% on the $102.3 million a year earlier.

Between August and January 23 sales at Hallensteins were up 3.5% with same store sales up 5%, Glassons NZ sales fell 5.4% and were down 7.1% same store, Glassons Australia sales fell 9% overall and also same store, while Storm sales lifted 28.5% and were up 5.2% same store.

The group said that despite the reduced earnings figure, it anticipated a strong balance sheet and liquidity position would enable it to maintain its dividend flow at a rate similar to last year.

NZPA

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