Hallenstein Glasson [NZX: HLG] said annual profit fell 25 percent as the listed clothing chain failed to gain enough momentum in the second half to make up for a lacklustre first six months of the year.
Net profit fell to between $14 million and $14.2 million in the 12 months ended Aug. 1, from $18.7 million a year earlier, the Auckland-based company said in a statement. Sales fell 5.5 percent to $208 million. The 25 percent fall in annual earnings is an improvement on the 40 percent slump in first-half profit, and sales fell at a slower pace at 2 percent, compared to 8 percent in the first six months of the financial year.
"Performance for the second half of the year had shown some improvement on the first half results, but momentum had been insufficient to regain ground lost in the first half of the year," chief executive Graeme Popplewell said.
That's the second year Hallenstein will report a fall in profit as,clothing retailers continue to struggle with an unseasonably warm winter sapping demand for their products, and heightened competition from online rivals.
The shares rose 1 percent to $3.05 on Friday, and have dropped 21 percent this year. The stock is rated an average 'hold' based on five analyst recommendations compiled by Reuters with a median target price of $3.37.