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


Hallenstein Glasson lifts profit 26%

Hallenstein Glasson lifts profit 26% as online sales surge

By Sophie Boot

Sept. 28 (BusinessDesk) - Hallenstein Glasson Holdings, the clothing retailer, lifted net profit 26 percent in the 2017 year as online sales continued to grow.

Sales rose to $239 million in the 12 months ended Aug. 1, from $223.5 million a year earlier, the Auckland-based retailer said in a statement. Net profit was $17.3 million, ahead of $13.7 million the prior year, and within the $17 million to $17.5 million band it gave in August.

The retailer's fortunes have improved after profit fell by a fifth last year as a decline in the kiwi dollar made imports more expensive, squeezing its margins, while its women's clothing chain Glassons struggled. New chief executive Mark Goddard took over at the helm in mid-April, replacing long-serving Graeme Popplewell who ended 46 years at the company.

Goddard said in a statement that the company's new buying strategy, focus on cost control and a favourable exchange rate led to the profit increase. The first seven trading weeks of the current financial year has seen sales up 5.5 percent, he said, with online trading continuing to show increased growth. It will update shareholders at the December annual meeting.

The board declared a 17 cents per share final dividend, up from last year's 16.5 cents, bringing the annual payout to 31.5 cents per share.

Goddard said online sales grew 44 percent in the year, much faster than brick and mortar stores, and now account for 9 percent of total turnover. The company will keep investing in technology and resources in the area to maintain that pace of growth, he said.

In New Zealand, Glassons sales rose 7.2 percent to $89.5 million, although the second half was not as strong as the first half. In the year, it opened one shop in the Christchurch CBD and closed an underperforming shop in Auckland's Glenfield. Chief executive Di Humphries resigned earlier this month, and the company said it was searching for a replacement.

In Australia, Glassons sales gained 22 percent to $50 million, which the company said came despite "a particularly tough market for retail" in the country. In the year, it opened three new stores, close three, and refurbished six. It plans to open two new stores in Australia including one in Melbourne's CBD in the current year.

Hallenstein Brothers sales across New Zealand and Australia rose 1.9 percent to $91.1 million. Goddard said the brand had a "much improved second half". In the year, it opened three stores in Australia and said it would monitor the success of those stores to decide on any further rollout. In New Zealand, it opened two stores in Christchurch CBD and Newmarket in Auckland and closed one in Christchurch's The Hub.

Sales dropped 11 percent to $8.3 million in the retailer's Storm brand, which it said was due to a competitive market and "has not been helped by major infrastructure works around three key Auckland stores which has had a material impact on trade." The company closed its single Australian store in the year, which it said improved trading, and opened one in Queenstown.

The shares last traded at $3.18 and have gained 4.4 percent this year.



© Scoop Media

Business Headlines | Sci-Tech Headlines


Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

QV: Tax Changes Yet To Dampen Red-Hot Housing Market

Just over a month has passed since the Government announced measures aimed at dampening the rampant growth of the property market, and yet the latest QV House Price Index data shows the market hit a new high in April. The average value increased 8.9% nationally ... More>>

Stats NZ: Consents For New Homes At All-Time High

A record 41,028 new homes have been consented in the year ended March 2021, Stats NZ said today. The previous record for the annual number of new homes consented was 40,025 in the year ended February 1974. “Within 10 years the number of new homes ... More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>

Reserve Bank: Concerned About New Zealand's Rising House Prices

New Zealand house prices have risen significantly in the past 12 months. This has raised concerns at the Reserve Bank of New Zealand – Te Putea Matua about the risk this poses to financial stability. Central banks responded swiftly to the global ... More>>

Westpac: Announces Strong Financial Result

Westpac New Zealand (Westpac NZ) [i] says a strong half-year financial result has been driven by better than expected economic conditions. Chief Executive David McLean said while the global COVID-19 pandemic was far from over, the financial effect on ... More>>