Hot winter sales good for Hallenstein Glasson

Listed clothing retailer Hallenstein Glasson expects profit to improve this year due to bumper winter sales, although the numbers announced yesterday were in line with some analysts' expectations.

The company said it expected a profit of between $21.7 million and $22 million for the year to August 1, up from $19.3 million the previous year.

It said group sales for the period to June 30 rose 8 per cent.

Winter-season sales and profit in New Zealand improved but performance in Australia had not met expectations because of "extremely competitive" trading conditions.

The company would not comment further and said a full-year profit announcement would be made in September.

Forsyth Barr analyst Guy Hallwright said the announcement matched expectations.

"Obviously, they've done quite well in New Zealand, probably a little better than I thought, and maybe a little bit worse than I thought in Australia," Hallwright said.

"Their indicated range of $21.7 million to $22 million is exactly where our forecast is, so it's not making any difference to the overall picture for us."

Hallwright said the company's operations across the Tasman might be struggling.

"They are talking about extremely competitive trading conditions," he said.

"It's an aggressive market, there are a lot of low-priced women's clothing retailers over there. They may have not read the market as well over there as they have in New Zealand."

Shoppers had stocked up on warm clothes with the winter cold snap but the weather would probably benefit the menswear chain more than the womenswear.

"That's mainly the Hallensteins story not the Glassons story," said Hallwright.

"They tell me it [cold weather] doesn't make a lot of difference to what women buy. They are thinking about other things."

Shares in Hallenstein Glasson closed down 30c at $5.30.