Hallenstein Glassons has reported a positive result for its first half, although Hallensteins' profit has been hit hard. Photo / Alex Burton
Hallenstein Glassons has reported a positive result for its first half, although Hallensteins' profit has been hit hard. Photo / Alex Burton
Womenswear retailer Glassons has revealed a rise in revenue and profit in its latest half-year results, with the trend set to continue as the year carries on, thanks to a strong Australian market.
However, the Hallenstein business has felt the impact of a contracting New Zealand economy with pressure ongross margins, causing its profit to drop by over 40%.
In the six months to February 1, 2025, Hallenstein Glasson Holdings reported half-year total group revenue of $240 million, up 7.7% compared to $222.9m in the first half of last year.
The group made a net profit of $21.2m, up by 0.3% compared to $21.1m in the previous corresponding period, in line with the guidance set by the company in late February.
As with other retailers, gross margins declined slightly, dropping to 58.5% compared to 58.8% in the previous year, largely because of the challenging New Zealand retail environment over the peak trade period.
The group also said the strengthening United States dollar continued to affect its inventory purchasing costs.
Hallenstein Glasson chief executive Chris Kinraid said there was a continued focus on operating cost efficiency across the group, given the difficult trading environment.
“This was balanced with continued investment in our operational capabilities to support the growth of our Australian brands, which continue to deliver strong performance.
“Inventory levels were tightly controlled and ended the period lower than the prior year-end.”
Hallenstein Glasson chief executive Chris Kinraid said there was a continued focus on operating cost efficiency across the group.
Store summary
Looking at the segments, Glassons New Zealand reported total revenue of $57.3m, up 0.2% against the corresponding period last year.
It made a net profit of $6.7m, an increase of 18% on the previous corresponding period ($5.7m).
Hallenstein Glasson chief financial officer Cameron Alderton confirmed that Glasson’s NZ margin was 55% this year, compared with 54.6% last year.
Over the half, the Lynn Mall and Shirley stores were refurbished and a new store opened in Manawa Bay near Auckland Airport. The Timaru store was closed at the end of August 2024.
Glassons Australia was the standout performer, with its total revenue up 15.8% to $123.9m, compared with $107m in the first half of last year.
Its net profit rose 9% to $11.8m, up from $10.9m in the prior period.
Over the half, the Werribee store in Victoria was relocated and expanded. The half-year also benefited from the Rundle Mall store in Adelaide, which opened the previous winter, as well as several other stores that were refurbished in the second half of the previous year.
After the reporting period, an outlet store in Harbour Town Adelaide opened in March, with a further store opening imminently on the Sunshine Coast in Queensland.
Glassons Australia and New Zealand performed particularly well over the first half, with the NZ operation increasing its gross margins. Photo / Alex Burton
Hallensteins had the toughest half for the group, with total transtasman revenue increasing marginally by 0.1% to $58.8m.
According to the group, Hallensteins’ gross margin was particularly hit because of the difficult trading environment in New Zealand, dropping to 56.2%.
It reported a net profit of $2.5m, compared with $4.5m in the first half of last year, a drop of 43.6%.
Hallensteins also opened a new store in Manawa Bay this half, with a new store concept design rolled out in the Silverdale store in Auckland in November.
Online sales have grown to 17.7% of total group sales for the six‐month period, up from 17.3% in the corresponding period last year.
“Growth has returned to our digital channels following a normalisation of post‐pandemic trade," the company said. “Customers have continued to enjoy the physical in‐store experience with many of our customers shopping both in‐store and online concurrently, demanding a true omni-channel experience.
“The Glassons app continues to be very successful, while significant work has been undertaken on both the Hallensteins and Glassons web shops to improve customer experience and increase conversion.”
Future outlook
Looking ahead to the second half, group sales for the first seven weeks were up 5.4% compared with the corresponding period last year, though margins remained under pressure.
Kinraid said the retail environment had remained subdued in New Zealand, though he thought the group remained well-placed as it recovered.
“We are conscious of the significant challenges that are expected to continue for the remainder of the financial year, given the uncertainty in the current economic environment in New Zealand, Australia and globally.
“We continue to look for margin, operational and cost efficiencies while remaining flexible with our product offerings to ensure we are well positioned for changes in the market.”
The group declared an interim dividend of 24.5 cents per share (partially imputed at 40.5%) to be paid on April 17, 2025.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
