Glassons was the company’s most profitable division. Photo / Chris Gorman
Glassons was the company’s most profitable division. Photo / Chris Gorman
Clothing retailer Hallenstein Glasson Holdings has increased its half-year profit by 1.5 per cent to $21.1 million as Australians increasingly enjoy its festival fashion sense.
The company, which owns women’s brand Glassons and men’s brand Hallensteins, sold NZ$223m worth of apparel in the six months ended February 1and made a larger margin on it of 58.9 per cent.
“Despite the challenging economic environment, particularly in New Zealand, Glassons continues to refine and adapt to changing market conditions, bringing relevant and desirable product at speed to market,” new chief executive Chris Kinraid said in the market announcement.
“Australia remains a focus growth market, as we continue to increase our brand awareness and penetration.”
Sales at Glassons stores across the ditch increased 4.1 per cent, making up about half of its total sales.
That was the company’s most profitable division, with a net profit after tax of $10.9m.
“Despite difficult market trading conditions, we experienced growth throughout the half, particularly in the key Black Friday and Christmas trading periods,” Kinraid said.
It opened two new stores in Australia, one in Victoria and another in Adelaide, and planned to refurbish and possibly open more.
But Glassons sales in New Zealand went backwards by 5.8 per cent, despite the Christmas shopping season having solid foot traffic.
In the period, it closed down its Blenheim store and relocated its Auckland Albany and Christchurch central stores to try to improve performance.
Hallensteins had a significant boost in profitability in the six months to February. Photo / NZME
Hallenstein Brothers in New Zealand and Australia also had a decline in sales, of 1.7 per cent.
However, its profit grew 24.6 per cent, as the margin it made on sales improved by 440 basis points.
It rolled out a new store concept in its Auckland Manukau store, relocated its Garden City store in Brisbane’s Mt Gravatt and opened a pop-up store in the Gold Coast ahead of Christmas.
Music to shareholder’s ears
Kinraid said trading for the current half was positive with group sales for the first seven weeks of winter already 8.3 per cent ahead of last year.
“We have benefited from a number of events, festivals and major international acts performing in New Zealand and Australia, supporting demand for our product ranges across both Glassons and Hallensteins.
“Whilst this is a pleasing start to the winter season, we are conscious of the significant challenges that are expected to continue for the remainder of the financial year given the current economic environment in New Zealand, Australia and globally.
“Given the current circumstances, we do expect the Australian trading environment to remain stronger than that of New Zealand. Cost efficiencies are being made where possible.”
Hallenstein Glasson chief executive Chris Kinraid started at the retailer at the end of last year, relocating from Melbourne to Auckland. He was formerly chief financial officer of KMD Brands, owner of Kathmandu.
Kinraid said the retailer’s focus would remain on delivering fashionable, on-trend clothing to customers while progressing its sustainability initiatives.
“In addition, ongoing investment in our people, digital experiences and physical stores will position us well to adapt to the market changes ahead.”
The retailer maintained an interim dividend of 24 cents per share.
Madison Reidy is the host of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment and has covered business and economics for television and radio broadcasters.
