Hallenstein Glasson 1H profit drops 21%; warns on mild autumn and weaker kiwi

Wednesday 23rd March 2016

Clothing retailer Hallenstein Glasson Holdings posted a 21 percent drop in first-half profit and warned that a warm autumn is having an impact on sales in both Australia and New Zealand.

Net profit to $6.8 million in the six months ended Feb. 1, from $8.6 million a year earlier, the company said in a statement. Sales rose by 1.4 percent to $112.4 million. The gross margins on sales fell to 56.79 percent from to 60.42 percent. Total expenses fell 1.4 percent as the retailer took steps to preserve margin and the company said it's committed to what it terms "future cost refinement".

It operates the Hallenstein menswear brand and the Glassons and Storm womenswear brands. All the brands saw sales growth apart from Glassons in New Zealand, with chief executive Graeme Popplewell telling investors that there has been a "significant focus on improving the fashion offer" which should see better future performance.

Despite Hallenstein menswear raising sales by 6 percent, the company says the highly competitive market meant it couldn't pass on the impact of the lower kiwi dollar. Sales for the first seven weeks of the season are on a par with last year. However online sales are up 38 percent and Hallenstein Glasson says it will continue to focus and invest in this area.

The clothing retailer's share price rose 0.6 percent today to $3.14 and has fallen 6.3 percent since the start of the year.

(BusinessDesk)

BusinessDesk.co.nz

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