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Hallenstein Glasson became the latest clothing retailer to report weak summer sales, saying yesterday its half-year profits would be 10 per cent lower than last year.
The men's and women's fashion retailer said its net profit for the six months to February 1 was forecast to be between $9.8 million and $10 million - down about 10 per cent on last year's $10.9 million.
The company said it had suffered "a challenging summer season due to unfavourable weather conditions for apparel". Total group sales from August 2 to January 22 were down 1 per cent on the previous year, while same-store sales dropped by 7 per cent.
The NZX-listed company became the latest clothing retailer to point to a difficult summer season after The Warehouse Group said apparel sales were below expectations and Hellaby Holdings said six-month net profit would be slashed by as much as half partly due to poor sales at its No 1 Shoe Warehouse and Hannahs shoe chain.
Forsyth Barr retail analyst Guy Hallwright has said seasonal spending on clothing and footwear had been deferred or minimised in the face of bad weather, giving those sectors a difficult three months.
Hallensteins said stock levels were well controlled and the business was well positioned to move forward into the new winter season.
Sales during the key trading period of December and early January had matched last year.
The announcement came just before the sharemarket closed and Hallenstein's shares ended up 1c at $5.12.
