Hallenstein group profit rises 65pc
A shift in shopping habits and an increased focus on social media has helped boost profits at Hallenstein Glasson Holdings.
The fashion retailer, which owns Hallenstein Brothers and Glassons stores in New Zealand and Australia, posted a profit after tax of $15.1 million for the half-year ended February 1, up 65 per cent on the same period last year.
Chief executive Mark Goddard attributed the result to the opening of two new Glassons stores in Australia, a focus on digital growth, and less discounting.
Retail expert Chris Wilkinson said consumers were also returning to Kiwi brands, as the novelty of foreign newcomers, such as H&M and Zara, wore off.
‘‘While [international brands] will have only impacted certain regions, they are fairly populous areas, and those stores have drawn shoppers from a wider catchment, so will have had some early impact,’’ he said.
‘‘By comparison, Hallenstein Glasson stores are vibrant, exciting and the big-city branches are highly experiential, leveraging digital graphics, DJS and active interaction by sales staff.’’
Last month, Hallenstein Glasson announced it was selling its women’s clothing brand Storm to Storm’s creative director and chief executive, Deborah Caldwell.
Hallenstein Glasson said it no longer considered Storm a ‘‘core asset’’. This followed a 12.9 per cent slump in sales, and a $1.4m loss, for the six months.
The group planned to expand Glassons and Hallenstein Brothers in New Zealand and Australia, Goddard said.
For the six months, online sales accounted for 11 per cent of the group’s turnover. Total sales were $146.8m, up from $122.9m for the same period last year.
Sales were $50.3m at Glassons, $51m at Hallenstein Brothers and $3.6m at Storm.
Shareholders will be paid a final dividend of 20 cents a share, fully imputed, on April 13.