Hallenstein Glasson says annual profit rose about 58% after Storm sale
By Paul McBeth
Aug. 9 (BusinessDesk) - Hallenstein Glasson Holdings says annual profit rose about 58 percent, outpacing sales growth and after the clothing chain sold its Storm brand.
Net profit was between $27.1 million and $27.6 million in the year ended Aug. 1, up from $17.3 million a year earlier, the Auckland-based company said in a statement. 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."
The accelerated profit growth follows a strong first half where Hallenstein Glasson raised its dividend payment and said its two core brands - Glassons and Hallenstein Brothers - were in strong positions heading into winter.
The retailer sold Storm to the sub-brand's management for an undisclosed sum that wasn't material to earnings, saying the unit wasn't a core business. Instead, Hallenstein Glasson planned to focus its efforts on expanding its two major brands.
Hallenstein Glasson will make a full earnings statement on Sept. 28.
The shares last traded at $5.53 and have gained 40 percent so far this year.