Hallenstein Glasson reports lower sales and earnings

Monday 30th May 2011

Hallenstein Glasson Holdings Ltd's shares fell 17 cents, or 4.1%, to $3.98 after the company revealed a drop in revenue, even though its Australian stores were performing well.

The clothing retailer said today that group sales for the 17 weeks to May 29 fell 2.4% on the corresponding period last year.

"We are already witnessing aggressive discounting in the speciality fashion sector and we anticipate trading conditions in the remaining two months of the financial year will be difficult," the company said.

"Should the current trend continue the group anticipates margin erosion will be experienced due to an inevitable battle for market share and the need to clear winter stock levels."

Australian stores posted a 6.1% increase in Australian dollar terms, while the exceptionally mild winter in New Zealand during May has seen turnover fail to match last year's.

The company had closed seven stores due to the Christchurch earthquake on February 22.

NZPA

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