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HomeNEWSHallenstein Glasson reports 21 percent profit drop

Hallenstein Glasson reports 21 percent profit drop

Hallenstein Glasson Holdings includes the Hallensteins, Glassons and Storm brands under its umbrella.

For the six-month period ended 1 February, sales were $112.399 million, an increase of 1.4 percent.

Profits after tax were $6.817 million, a decrease of 21.1 percent.

CEO Graeme Popplewell said in his report that while top line sales have been maintained in a very challenging environment, margin pressure due to a lower exchange rate has negatively impacted on profit.

Hallensteins’ sales were up six percent on the year previous, while Glassons’ sales slid into the negatives.

Popplewell said a focus on improving Glassons’ fashion offer should help improve its future trading performance.

Total expenses fell 1.4 percent as the retailer took moved to preserve its margins.

Popplewell said this was due to an effort by management to soften the impact of reduced margins, with “cost refinement” continuing into the year ahead.

New Hallensteins and Glassons stores opened in the Northwest shopping centre in October last year, while Hallensteins closed a store at Westgate.

There are also plans in the works to upsize Glassons’ stores in Melbourne and Sydney, while Storm will refurbish new premises in Lambton Quay in Wellington.

Popplewell said sales for the first seven weeks of the season are on track with last year, but there is still pressure on margins.

“The record temperatures in both New Zealand and Australia have not been conducive to early autumn sales and the retail environment in fashion apparel remains challenging,” he said.

However, he said on a positive note, its ecommerce business is outpacing the growth of its bricks and mortar stores, with online sales of the first seven weeks up 38 percent.

He said the company would continue focusing and investing in this area.

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