Hallenstein Glasson sees 25pc rise in profits

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Hallenstein Glasson’s December sales fell.
Photo: RNZ

The clothing retailer Hallenstein Glasson has reported a strong full-year result, with group sales and profit well ahead of last year, which was hit by Covid-related store closures.

The group’s net profit, which included Glassons and Brothers brands, rose 25 percent to $32 million for the 12 months ending 1 August.

Group sales rose 17 percent to nearly $410m, with first half sales stronger than in the second-half.

It said the start to the second-half had been challenging with consumer spending down, though group sales for the first eight weeks of the winter season were up 14 percent.

While total sales rose on both sides of the Tasman, online sales fell 18 percent compared with 33 percent growth the year earlier, as more customers preferred to shop instore.

It said the strong US dollar was challenging, but the company’s ability to negotiate with suppliers and cut freight costs meant profit margins were little changed from the year earlier at 57.3 percent compared with 57.6 percent.

While the company was working to maintain profit margins, it said the first eight weeks of the new financial year had seen sales fall nearly 6 percent on the year earlier, as cost-of-living pressures increased in both countries and its brands.

In addition, an unseasonably warm winter had made it difficult to clear winter products.

The company said it continued to look for cost savings and was well positioned for the upcoming peak trading period.

Its full-year dividend was unchanged from the year earlier at 48 cents a share.