KEY POINTS:
Kiwi clothing label Hallenstein Glassons is moving across the Tasman - well, a very small part of it is, anyway.
The company is to move the buying function for its Glassons womenswear stores from Christchurch to Melbourne later this year.
Chief Executive Shayne Quanchi said the key buying team, consisting of about five people, will relocate to Melbourne before the end of the year.
"Buying is a vital function of a fast moving fashion business such as ours and we want to have this core function located close to the growth opportunities already identified in Australia."
Ms Quanchi said it is only the "fashion direction" of the Glassons business that is relocating. Other functions such as visual merchandising, financial services, retail, marketing, operations and distribution will remain in Christchurch. The structure of the Hallensteins menswear business remains unchanged; it will continue to operate out of its Auckland head office.
Ms Quanchi said, "We are very conscious of the need to maintain a balance between harnessing the growth opportunities in Australia while still continuing to grow and develop our core business in New Zealand."
Ms Quanchi, who started in the top job in March, was formerly a Melbourne-based senior executive at Myer.
Meanwhile, the company has warned of a fall in annual profit.
While cooler winter weather had boosted sales, autumn had been challenging, directors said. Group sales over the 14 weeks to May 11 were $50.27 million, 5.3 per cent down on a year ago.
"Consumer demand is under considerable pressure from a rising cost of living; a mild autumn which has not been favourable for winter apparel, and Easter which traditionally provides a catalyst for the commencement of sales of winter apparel was very early this year," Hallenstein Glasson directors said.
"With the core winter months of May and June ahead, it is difficult to predict a full year result, although directors advise it is unlikely to match the 2007 annual result."
Net profit last year fell 1.3 per cent to $21.4m.
More than 90 per cent of the company's profit comes from New Zealand, but it is looking to grow across the Tasman.
Shares in Hallenstein Glasson fell 3c to $3.51.
- NZHERALD STAFF, NZPA
