Sharechat Logo

Investors eye steady plodder carefully

Friday 7th November 2003

Text too small?
Frayed menswear sales in Australia and another flat profit could be starting to play on the minds of investors in Hallenstein Glasson Holdings (HLG).

Fund manager AMP Henderson recently sold down its holding to below 5% as the retail company warned of tough trading ahead while reporting an after-tax profit of $11.4 million for the year August 1.

AMP had built up a $15.8% stake on a strong rising trend in the share price but has since sold down gradually.

The price is still at all-time highs and the stock carries an attractive dividend yield but the promise of future value is fading.

The result came in at virtually the same as last year, on a 1% increase in revenue from $175.1 million to $177 million.

A combination of fierce competition, exchange rate movements and changes in customer shopping patterns, have made it difficult for HLG to expand its business.

The group, which runs the Hallensteins menswear, Glassons womenswear and HBK Girl clothing stores in New Zealand and Australia, has built its store chain steadily but was forced to withdraw its menswear brand from Australia after poor results.

Chairman Warren Bell said the latest result reflected a trading year in which the apparel market had been subject to aggressive discounting as competitors fought for market share.

  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:

12th November 2019 Morning Report
MARKET CLOSE: NZ shares gain, retirement villages buoyed by Auckland housing market bounce
NZ dollar rises, shrugging off US-China trade war woes
Long-serving ACC investment chief calls it a day
Institutional investors continue to shun Fonterra
Card spending stalls; dearer petrol crowds out other goods
Abano directors cave to takeover by scheme of arrangement
Fletcher dismisses subcontractor claims as vague
11th November 2019 Morning Report
Odds favour a rate cut but it's a line ball call

IRG See IRG research reports