Hallenstein Glasson profits up 56pc

Photo / Richard Robinson

Clothing retailer Hallenstein Glasson Holdings reported half year net profit up 55.9 per cent to $8.5 million, due to improved sales, increased margin, and tight cost control.

Revenue for the six months to February 1 were up 6.9 per cent on a year earlier, to $102.3m, while expenses rose 2.5 per cent to $44.7m.

An interim dividend of 14c per share is to be paid, compared to 10cps last year, with the company saying the dividend would continue to reflect earnings and capital spending requirements.

For the first seven weeks of the new half year, sales had been down 2 per cent on the prior year, although margin was ahead of last year, Hallenstein Glasson said.

"Sales are against strong discounting last year, and we caution against reading too much into these figures. It is too early in the season to make any prediction on the winter season results.

"The retail environment is reasonably stable and consumer confidence is at a stronger level than last year. Other retailers have used the phrase 'cautiously optimistic' and in the absence of any major negative economic news we concur with that sentiment," the company said.

Chairman Warren Bell said the improved profit was a solid step towards regaining profit levels achieved before the impact of the recession of 2008 and 2009.

The effect of improved sales, increased margin, and tight control on costs had all combined to lift profits towards the levels previously achieved, he said.

"Strong trading over the Christmas period and early January cemented what had been a steady improvement during the period."

The company said that after a year of curtailed capital expenditure on store development, a number of projects were now under way.

- NZPA