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Directors of clothing retail group Hallenstein Glasson Holdings yesterday sounded a profit warning for the company's February half-year result despite the fact that the busiest part of the trading year - Christmas and New Year - is still to come.
In a statement to the stock exchange, the company said it was unlikely that profits would meet the $9.969 million net profit made for the same period last year because of a highly competitive marketplace in both New Zealand and Australia.
"Given the impact December has on the overall result for the period, the directors advise it is extremely difficult to provide guidance on the profit for the half year ended February 1, 2008.
"However directors caution that it is unlikely profit will meet the $9.969 million tax-paid profit reported last year for the same period," the company said.
Sales for the first half of the six monthly reporting period were down 1.6 per cent on the same period last year for the 17 weeks ending November 25.
The company said in particular the New Zealand trading environment had been uncertain and anecdotal evidence suggested interest rate increases were beginning to bite.
In September, it also blamed competitive pricing for its flat 2007 full-year result for the year to August 1. The company's net profit was $11.46 million, compared with $11.43 million for the same period last year.
At the time chairman Warren Bell said the result reflected a trading year in which the apparel market had been subject to aggressive discounting as competitors fought for market share.
Hallenstein Glasson shares closed down 2c at $4.34.
