Sharechat Logo

Hallenstein shares jump 7.5% on first-half profit guidance

Wednesday 13th February 2019

Text too small?

Hallenstein Glasson Holdings appears to have had a better than expected Christmas, with first-half sales up 3.1 percent and net profit expected to be about 6 percent higher.

The clothing retailer says sales for the six months ended Feb. 1 were $151.2 million, up from $146.8 million in the same six months a year earlier.

It expects net profit for the six months will come in at $15.7-16.2 million, up from $15.1 million the previous year.

Hallenstein shares jumped 31 cents, or 7.5 percent, to $4.45 after the announcement. The shares are barely changed from a year ago and have fallen from as much as $6.35 last August.

In December, Hallenstein warned it might face a margin squeeze in the six months just passed amid tough trading conditions in both New Zealand and Australia.

The company, which owns the Hallensteins menswear and Glassons womenswear chains, cited increasing costs, including fuel, freight and electricity, as well as the lower New Zealand and Australian dollars as putting pressure on trading margins.

Chair Warren Bell told the annual meeting the company would focus on improving market share and customer experience at the same time as keeping tight control over operating costs.

Today, Hallenstein said in a brief statement that its balance sheet “remains strong and stock levels continue to be well controlled.”

Hallenstein has often been called “the best in the business” as far as running its activities, but has never been particularly good at communicating with shareholders.

It reported a 58 percent increase in annual net profit last year after selling its unprofitable Storm womenswear retail chain and imposing stricter cost controls.

After a number of subdued reports from retailers about the often crucial Christmas-New Year trading period, figures from Stats New Zealand showed that core retail credit and debit card spending rose a seasonally adjusted 2.2 percent in January, reversing the 1.7 percent decline reported in December.

(BusinessDesk)

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  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:

Briscoe Group says outlook uncertain
FMA, RBNZ disappointed by life insurers' response; $1.4m of issues found
Steep rate cut may have spooked households - Westpac
Veteran media exec Joan Withers joins Sky TV board
Contact hires Refining NZ CEO to replace Barnes
17th September 2019 Morning Report
NZ dollar weaker after Trump authorises use of emergency crude stockpile
Govt minerals strategy poses 'significant' risk to security of supply - Enerlytica
Z, BP, Mobil dragging chain on secure Auckland jetfuel supply - review
MARKET CLOSE: NZ shares fall; high oil prices weigh on Air NZ, Mainfreight

IRG See IRG research reports