Hallenstein Glasson says first-half profit rose about 63%, beating earlier guidance

Friday 16th February 2018

Hallenstein Glasson Holdings says first-half profit rose about 63 percent on a strong rise in sales and improving gross margin.

The clothing retailer said total group sales for the six months ended Feb 1 were $146.8 million, an increase of 19.4 percent over the prior corresponding period. Gross margin for the period was approximately 3.5 percentage points up on the prior year which was achieved through strong sales performance, improved buying strategy and reduced promotional activity and discounting, it said.

As a result, group profit after tax was in a range of $14.75 million to $15.25 million versus $9.2 million in the prior year, an increase of approximately 63 percent. In December the company said it had expected net profit to rise by more than 50 percent as it sold more clothing at full price and reduced its levels of promotions and discounts.

The company also said "the balance sheet for the group remains strong and stock levels continue to be well controlled." It is due to announce the first half results on March 30.

The stock last traded at $4.30 and is up 27 percent over the past 12 months.

(BusinessDesk)

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