Freight congestion sees Hallenstein Glasson flying in stock
Fashion retailer Hallenstein Glasson says it has had to revert to air freighting some products in order to cope with the country’s inwards freight problems.
Managing director Mary Devine told the company’s annual meeting yesterday that freight was ‘‘one of the most significant issues’’ it was currently dealing with, and ‘‘whilst this is the right decision for our business and customers, there will be some impact on gross margin’’.
The popular fashion retailer also reviewed a year in which stores were closed for several weeks due to lockdowns, its online sales ramped up significantly, and its Hallensteins subsidiary lost momentum.
Chairman Warren Bell said the first 14 weeks of its new financial year had been strong, with sales up 14 per cent and trading ahead of last year. Nevertheless, ‘‘the company continues to be cautious in regard to the future impacts of Covid-19 on customer confidence and spending patterns in the lead-up to Christmas’’.
Net profit for the year to August fell just over 4 per cent to $27.77 million, on virtually flat sales of $287.76m compared to the previous year.
But the group’s women’s clothing chain Glassons proved to be a mainstay, producing a 1.9 per cent rise in sales, which helped to offset a 9 per cent decline for its menswear chain Hallenstein Brothers.
Devine said the company had faced an extremely challenging environment, particularly in its second half, when the Covid outbreak closed its stores in both New Zealand and Australia in late March. They did not reopen until May.
While the closedowns were ‘‘obviously very disruptive and costly’’, he said, the company’s online sales were a bright spot, nearly double last year’s levels and now representing nearly 22 per cent of all sales.
Other headwinds included shipping delays and increased freight costs.