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Hallenstein Glasson has become the latest retailer to suffer from cool summer weather, posting an 8.6 per cent drop in half-year profits.
The retailer reported same-store sales were down 7 per cent in Australia and New Zealand.
The market had been forewarned in November last year, with a trading update in January and analysts said yesterday there were no surprises.
One broker, who would not be named, said the prospect for sales growth was "not encouraging" given the difficulties faced by the retail sector, with higher interest rates reducing spending.
The company yesterday released sketchy information on sales performance for the group, which includes 85 stores in New Zealand - 47 Hallensteins and 35 Glassons - and 24 Glassons stores in Australia.
Chief executive David Kinraid and chairman Waren Bell did not return calls from the Business Herald.
In a statement to the NZX, Kinraid said the results reflected a particularly challenging summer season for apparel in both New Zealand and Australia due to cooler than normal weather.
New Zealand sales - where margins are much higher than Australia - were $85.9 million, a decrease of 1.1 per cent. Australian sales were up 4 per cent with a new Glassons in Melbourne, but overall same-store sales were down on both sides of the Tasman.
Analysts pointed to a fall in working capital, suggesting that stock was not moving fast.
Kinraid said that since the February 1 balance date, Glassons had opened a further store in Queenstown which was trading well. He said that Australian operations had experienced a "more positive" start to the winter season.
During the period under review, the company had continued to improve gross margins on sales, Kinraid said.
But pressure on costs had seen net profit on sales decline from 10.9 per cent last year to 9.9 per cent.
"Rents and staff costs have been a constant challenge."
Kinraid said the first seven weeks of the winter season had been marginally below last year at minus 1 per cent, though volumes were expected to increase in May.
Directors declared a dividend of 17c, the same as last year.
Shares in Hallenstein Glasson closed up 7c at $5.15.
