Hallenstein Glasson Holdings said annual profit fell 22 percent to its lowest level in seven years due to weaker margins at its clothing chains.
Net profit fell to about $13.5 million in the 12 months ended August 1, from $17.4 million a year earlier, the Auckland-based company said in a statement. That's the lowest profit since 2009 when the company earned $12.8 million. Sales edged up to $223.5 million from $221.5 million, it said.
The clothing retailer, which operates the Hallenstein menswear brand and the Glassons and Storm womenswear brands, said its gross margin fell to 56.5 percent from 59.3 percent a year earlier.
That reflected a lower exchange rate that increased the cost of offshore purchases, mild winter temperatures that prompted discounting of winter categories, and a lack of effective management at its Glassons business.
However the company said purchases for the key December trading period will be made at a more attractive exchange rate, and the performance of the Glassons business has improved since June after Di Humphries returned as head of the unit in April.
