Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Hallenstein first half profit drops 40%

Hallenstein first half profit drops 40%, says early winter sales show modest improvement

By Tina Morrison

March 25 (BusinessDesk) – Hallenstein Glasson, the clothing retailer dropped from the NZX 50 Index this month, posted a 40 percent decline in first-half profit as increased rivalry pushed down prices during the key summer season. It said early winter sales showed a glimmer of hope.

Net profit fell to $6.2 million in the six months ended Feb. 1, from $10.4 million in the year earlier period, the Auckland-based company said in a statement. That’s in line with its January forecast for earnings of between $6 million to $6.3 million. Sales fell 8 percent to $106.4 million.

Hallenstein, which operates the Hallensteins, Glassons and Storm clothing stores in New Zealand and Australia, lost its place in the benchmark stock index following a 45 percent slump in its share price over the past year as it cut earnings guidance three times since June last year. The company said today that early figures for winter showed a “modest” improvement, with sales for the first six weeks about 2 percent ahead of the same period last year.

“We operate in a highly competitive environment which has, of recent times, been increasingly characterised by discounting and sale activity. Each chain in the group failed to execute the summer season to potential,” chief executive Graeme Popplewell said in the statement. “There is still considerable work to do to ensure the business recovers earnings to historic levels but we are encouraged by results over the past few weeks.”

Popplewell said the key winter trading months of May and June would be critical to achieving the company’s earnings target for winter. He didn’t provide further details.

Shares in Hallenstein advanced 0.7 percent to $3.02. The stock is rated an average “hold” according to analysts polled by Reuters.

Last month’s appointment of Tracy Shaw to head Glassons was an important element in returning the womenswear chain to a “satisfactory performance”, Popplewell said. Shaw replaces Di Humphries who left in October 2012 to head children’s clothing chain Pumpkin Patch.

Hallenstein will pay 12 cents a share dividend on April 17, down from the year earlier payment of 16 cents.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news