Hallenstein shares up on record result

Hallenstein Glasson's shares rose on opening after the fashion retailer posted a record half year profit thanks to a pick-up in summer sales and an "excellent" performance by its Australian outlets.

Hallenstein shares, which lost 17c in light trade yesterday, were up 13c to $4.13 shortly after opening this morning after the company said its after tax operating profit for the six months to February 1 was $8.47 million -- up 21 per cent on the previous corresponding period.

On the strength of the company's first half performance its directors lifted the interim dividend by 3c to 13c.

Hallenstein said it had put a fickle start to the summer behind it.

"Along with other apparel retailers we too experienced a slow start to December trading, but our stock offering was right in line with our customers' fashion expectations," managing director, Cliff Kinraid said.

"Against this background, the performance for the six months was excellent."

Chairman Warren Bell said while New Zealand remained the company's cornerstone operation, "the excellent progress that continued to be made in Australia was a standout feature".

Sales at the group's Australian Glasson shops rose by 31 per cent to $10.2 million, "and our initiatives in Victoria and New South Wales are giving us good growth impetus," Mr Bell said in a statement.

Hallenstein's Australian operations posted an after tax operating profit of $114,000 for the period, up from a $396,000 loss a year earlier.

Today's result was "a significant milestone in our development as a trans Tasman retailer," Mr Bell said.

Mr Kinraid said the company had invested heavily in senior personnel and a distribution network in Australia.

"That infrastructure is capable of supporting many more stores than the current 16 we have in Australia," he said.

The group will open another Sydney store next week and will add a further four or five Australian outlets over the next year if it could find suitable locations.

"Our approach to growth in Australia will continue to be measured, with a focus on achieving acceptable levels of profitability," Mr Kinraid said.

Meanwhile, Mr Kinraid said New Zealand sales at $80.4 million were up 4 per cent excluding discontinued operations with gross margins maintained by stock control and focus on costs.

NZPA