Hallenstein Glasson Holdings has announced an expected annual profit rise of about 58 percent after the sale of its Storm clothing brand.
The group sold its Storm brand, a more mature line, to the sub-brands management for an undisclosed sum that wasn’t material to earnings, saying the brand wasn’t a core business.
Now, with the sale successful, the group is expected to focus on growing and expanding its two core retailers, Glassons and Hallensteins.
The sale of storm was announced in March, an unsurprising move as the fashion brand has always been a weak performer compared to the other two retail chains.
In light of the sale, the group has announced a 58 percent rise in annual profit. Net profit for the year ending August 1 was up $17.3 million, sitting around $27.3 million for the year.
That outpaced a 16 percent increase in sales to $239 million and captures four months of its Storm exit.
"The group’s balance sheet remains strong and future cash flow is projected to be positive," chief executive Mark Goddard said. "Stock levels are also well managed."
Shares for the group have increased by an impressive 40 percent, while the full earnings statement will be released September 28.