CORRECT: Hallenstein says FY profit rose as much as 14%

CORRECT: Hallenstein says FY profit rose as much as 14% on sales growth, insurance

(Corrects to add million to sales figure in second paragraph)

Aug. 20 (BusinessDesk) - Hallenstein Glasson Holdings, the clothing chain, said full-year earnings rose as much as 14 percent on increased sales and the contribution from insurance relating to the Christchurch earthquakes.

Profit in the 12 months ended Aug. 1 was between $20.4 million and $20.8 million, from $18.3 million a year earlier, the Auckland-based company said in a statement. Sales rose 4.9 percent to $215.6 million.

The retailer plans to release its full results for the period on Sept. 26. Pretax earnings in the latest year included $1.9 million of insurance proceeds compared to $2.97 million a year earlier, it said.

“Notwithstanding an exceptionally challenging retail environment all brands have shown positive same store growth and grown market share,” said chief executive Graeme Popplewell. “Gross margin on sales improved and market anomalies as a result of the Christchurch earthquakes are now behind us.”

The shares fell 0.5 percent to $4.37 and have climbed about 25 percent this year. The stock is rated a ‘hold’ based on five analyst recommendations compiled by Reuters, with a price target of $4.06.

(BusinessDesk)

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