Hallenstein 1H earnings may rise by a third on robust Christmas trading

Monday 19th January 2015

Hallenstein Glasson, which operates the Hallensteins, Glassons and Storm clothing chains in New Zealand and Australia, expects first half earnings to rise by about a third after robust Christmas trading with positive growth continuing through January.

Post tax earnings may rise to between $8.1 million to $8.3 million in the six months ending Feb. 1, from $6.2 million a year earlier, the Auckland based company said in a statement.

Hallenstein expects earnings to rebound following a 40 percent slump in first half profit last year when increased rivalry during the summer season pushed down prices. During the latest summer season from August 2014 through to January 2015, sales were up 3.8 percent on the year earlier, the company said.

"Sales over the key Christmas trading period have been robust, and January has continued to show positive growth over the prior year in both New Zealand and Australia," chief executive Graeme Popplewell said. December sales were 8 percent ahead of the year earlier "with January results continuing in a similar vein," he said.

Shares in Hallenstein last traded at $3.16 and have declined 9.7 percent the past year. The company's stock is rated an average 'buy' according to five analyst recommendations compiled by Reuters.

BusinessDesk.co.nz

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