Hallenstein Glassons profits fall 20pc

Hallenstein Glassons says margins were hit during a battle for market share over the past year. Photo / Richard Robinson

Clothing retailer Hallenstein Glassons has reported a nearly 20pc profit fall for the past year, despite sales up 2.3 per cent on the previous 12 months.

The company made an after tax profit of $12.8 million for the 12 months to August 1, down 19.3 per cent. An 11 cent dividend will be paid.

Company chairman Warren Bell described retail conditions as "particularly difficult in the first half of the year, but there were signs that economic conditions had stabilised, albeit at a low level in the latter part of the year."

Margins had been eroded by a battle for market share, but Bell said the company was continuing to demonstrate its ability to "tightly manage inventory" with levels down 9 per cent on the year before.

Company chief executive Roy Dillon said that the result reflected the strategy developed last year to drive sales and retain market share, which would "protect the company's business and position it well to reap benefits as market conditions improved."

Dillon said profits for the second half of the year were up 10 per cent on the second half or last year, driven mainly by improved performance from its Australian Glassons stores.

"We are particularly encouraged by our results in Australia, where we have implemented new strategies to improve our business model and pave the way for a profitable future."

Same store sales in Australia improved 12.5 per cent in Australian dollars, with most of the improvement generated in the second half of the year.


- NZ HERALD STAFF