Hallenstein Glasson expects 13-18% fall in net profit
Retailer hit hard in half year to February 1.
Clothing retailer Hallenstein Glasson Holdings is expecting a fall of 13 to 18 percent from a year earlier in net profit for the half year to February 1.
Chief executive Stephen Timms said the Hallensteins menswear operation and the fashion and price-focused Storm stores had performed above the year before during the key trading months of December and January to date.
But trading was difficult for women's fashion operation Glassons in this country and Australia.
"Intense competition for market share had been a feature of the women's fashion market on both sides of the Tasman," Mr Timms said today.
The group said net profit after tax for the six months to February 1 was projected to be in the range of $7 million to $7.4 million, a fall of 13 to 18 percent on the $8.55m a year earlier.
Group sales for the latest half year were projected at $100.62m, down 1.6 percent on the $102.3m a year earlier.
Between August and January 23 sales at Hallensteins were up 3.5 percent with same store sales up 5 percent, Glassons NZ sales fell 5.4 percent and were down 7.1 percent same store, Glassons Australia sales fell 9 percent overall and also same store, while Storm sales lifted 28.5 percent and were up 5.2 percent same store.
The group said that despite the reduced earnings figure, it anticipated a strong balance sheet and liquidity position would enable it to maintain its dividend flow at a rate similar to last year.
NZPA
Wed, 26 Jan 2011
Wed, 26 Jan 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Hallenstein Glasson expects 13-18% fall in net profit
11828