Hallenstein Glasson says FY profit edges up as Glassons maintains sales growth

Monday 12th August 2019

Hallenstein Glasson Holdings said annual profit rose about 2 percent as its womenswear chain maintained sales momentum on both sides of the Tasman but its menswear stores struggled.

The company said net profit was $27.7-28.2 million in the 12 months ended Aug. 1, with sales up 3.3 percent at $286.7 million. Last week, the retailer said it will also book a $1.1 million gain on the sale of a downtown Wellington property.

"Sales growth was maintained throughout the second half of the year for both Glassons New Zealand and Glassons Australia but Hallenstein Brothers experienced a tougher season with sales and margin down on the year," group managing director Mary Devine said in a statement.

When reporting its first-half result in March, the clothing retailer said winter season sales were encouraging, but warned the trading environment remained challenging.

Devine said the retailer's balance sheet and projected cash flows remain strong, and that stock levels remain well managed.

When taking over the reins in April, she was tasked with continuing to build digital customer engagement, controlling costs, and improving market share in New Zealand and Australia. E-commerce accounted for 14 percent of group sales in the first half.

Like other apparel chains, Hallenstein Glasson has had to contend with increasingly strong competition from cheaper online rivals such as Asos and it ditched its Storm branded stores in 2018 to focus on its two namesake brands.

The shares are up 1.7 percent at $5.39 and have climbed 29 percent so far this year, outpacing a 21 percent increase on the S&P/NZX All Index over the same period.

(BusinessDesk)

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