Sharechat Logo

Hallenstein Glasson 1H profit may rise 50% as it sells more full-priced products

Wednesday 13th December 2017

Text too small?

Hallenstein Glasson Holdings says trading so far this financial year suggests first-half profit may rise by more than 50 percent.

Sales increased 16 percent in the first 19 weeks of the year compared with the year-earlier period, signalling net trading profit over the summer period through to Feb. 1, 2018, could be more than 50 percent ahead of the prior period, chief executive Mark Goddard and chair Warren Bell said in notes for delivery at the company's annual meeting today. 

"The sales performance has come from our improved buying strategy, focus on speed, fashion, and our customers. This, in turn, has led to the strong growth in gross profit, " Goddard said. "Additionally, we continue to have strong cost controls in place."

The retailer said its profitability is improving as it sells more products at full price and reduces its levels of promotions and discounts. It is focusing on delivering new seasonal fashion quickly, and moving away from traditional marketing in favour of digital and social channels and influencer events, with web sales now making up 12 percent of sales, up from 9 percent in the 2017 financial year. 

Goddard said that over the past 12 months, the retailer has opened six new stores, renovated four, and closed six stores "as we continue to review and refine our store fleet to ensure we are in the best current, as well as future, locations for our customers."

"Across the group, we now have 123 physical stores together with exceptionally strong and aggressively growing web stores," he said. 

Its shares jumped 5.3 percent to $3.61.

(BusinessDesk)

  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:

MARKET CLOSE: NZ shares up 1%, led by Fisher & Paykel, Kathmandu, Spark
NZ dollar heads for 2% decline as resurgent US yields stoke greenback demand
Former Abano shareholders ordered to pay $429k in disputed takeover costs
Seeka shareholder Farmind to cut stake to reduce foreign ownership
Summerset opens Melbourne office as it looks to Australia for growth
Lees-Galloway signals broader health & safety targets in draft strategy
Veritas in refinancing negotiations as ANZ extends debt for a fourth time
ComCom embarks on fibre study to get a handle on looming new policy framework
NZ posts first trade deficit for March month in 10 years as fuel imports surge
NZ log export market picks up after slowdown ahead of Chinese New Year, traders optimistic

IRG See IRG research reports