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Hallenstein Glasson expects 14% profit lift

BUSINESSDESK: Clothing chain Hallenstein Glasson Holdings says full-year earnings rose as much as 14% on increased sales and the contribution from insurance relating to the Christchurch earthquakes.

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

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

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

As announced earlier, Diane Humphries has resigned as managing director for its Glassons women's clothing stores effective October 31.

She will take up a role as merchandise and brand director at children's clothing chain Pumpkin Patch.

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