Hallenstein Glasson tips big profit rise

Photo / Richard Robinson

Retailer Hallenstein Glassons is forecasting a profit rise of between 55 per cent and 57 per cent when it reports earnings in late September due to improved profit margins.

The operator of the Hallensteins, Glassons and Storm retail chains revealed today that sales for the 12 months ended August 1 rose 4.5 per cent to $207.14 million.

Group sales in the second half of the year rose 2.3 per cent.

As a result the company is predicting profit before tax for the year in the range of $28.3m to $28.8m, up 55 per cent to 57 per cent on the previous year.

"The increase in profit is directly attributable to an improvement in gross margin on sales," the company said.

The improved margins resulted from less aggressive discounting, an improvement in product offering, and the strengthening New Zealand dollar.

The company increased sales in the Australian market by 3.35 per cent in Australian dollar terms in the past six months.

The company operates more than 110 stores, with 25 in Australia.

Hallenstein Glasson Holdings was formed in 1985 on the merger of Hallensteins - an iconic menswear retailer first established in 1873, and Glassons - a fashion retailer founded in the early 1900's.

- NZPA