Hallenstein Glasson 1H profit may rise 50%

Hallenstein Glasson 1H profit may rise 50% as it sells more full-priced products

By Tina Morrison

Dec. 13 (BusinessDesk) - Hallenstein Glasson Holdings says trading so far this financial year suggests first-half profit may rise by more than 50 percent.

Sales increased 16 percent in the first 19 weeks of the year compared with the year-earlier period, signalling net trading profit over the summer period through to Feb. 1, 2018, could be more than 50 percent ahead of the prior period, chief executive Mark Goddard and chair Warren Bell said in notes for delivery at the company's annual meeting today.

"The sales performance has come from our improved buying strategy, focus on speed, fashion, and our customers. This, in turn, has led to the strong growth in gross profit, " Goddard said. "Additionally, we continue to have strong cost controls in place."

The retailer said its profitability is improving as it sells more products at full price and reduces its levels of promotions and discounts. It is focusing on delivering new seasonal fashion quickly, and moving away from traditional marketing in favour of digital and social channels and influencer events, with web sales now making up 12 percent of sales, up from 9 percent in the 2017 financial year.

Goddard said that over the past 12 months, the retailer has opened six new stores, renovated four, and closed six stores "as we continue to review and refine our store fleet to ensure we are in the best current, as well as future, locations for our customers."

"Across the group, we now have 123 physical stores together with exceptionally strong and aggressively growing web stores," he said.

Its shares jumped 5.3 percent to $3.61.

(BusinessDesk)

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