Summer fashion boosts Hallenstein Glasson

Hot December weather brought summer clothes shoppers out in force and yesterday prompted Hallenstein Glasson to significantly upgrade its profit outlook.

It is now expecting its first-half result to be at least 25 per cent up on the same period last year.

Shares in the clothing retailer followed the temperature gauge and soared 34c to close at $4.79 - a gain of more than 7 per cent for the day.

The company said group sales for August to January 23 were up almost 10 per cent on the same period last year, with same-store sales up 7.4 per cent.

Total sales in New Zealand for the period were up 7.4 per cent and same-store sales up 6.9 per cent. In Australia - the smaller part of the business - total sales were up 29.6 per cent and same-store sales 10.4 per cent.

Forsyth Barr analyst Guy Hallwright said stock selection was probably the key to the strong performance. The stores had basically picked all the right fashion styles.

The company was not as Christmas-focused as some listed retailers, so second-half performance was also important.

Hallwright said yesterday's new data meant Forsyth Barr would upgrade its full-year forecast 8 per cent.

Brokers had been taking a cautious approach on Hallenstein after the company warned late last year that it would feel the impact of any domestic economic slowdown.

In their statement to the NZX yesterday, directors said the profit for the six months to February 1 would be at least 25 per cent up on the year-earlier period.

Last year, Hallenstein posted a record net profit of $8.47 million for the six months ended February - up 21 per cent on the same time the year before.

A full results announcement for the half-year will be made in mid-March.