Retailer is dressed for success
Hallenstein Glasson annual profit lifts to around $27m
Hallenstein Glasson Holdings says annual profit rose about 58 per cent, outpacing sales growth and after the clothing chain sold its Storm brand.
Net profit was between $27.1 million and $27.6m in the year ended August 1, up from $17.3m a year earlier, the Auckland-based company said in a trading update.
That outpaced a 16 per cent increase in sales to $239m and captures four months of its Storm exit.
The group’s accelerated profit growth follows a strong first half where Hallenstein Glasson raised its dividend payment and said its two core brands — Glassons and Hallenstein Brothers — were in strong positions heading into winter.
“The group’s balance sheet remains strong and future cash flow is projected to be positive,” chief executive Mark Goddard said in a statement.
“Stock managed.”
ShareClarity managing levels are also well director Daniel Kieser said Hallenstein Glasson’s forecast result was impressive. “With inventory levels under control, it says their products are on trend and selling.
“It also suggests their new concept mega stores are continuing to gain traction,” Kieser said.
Revenue growth in the second-half was down 13 per cent, from 19 per cent in the first half.
“Still a great result, but I wouldn’t be surprised if some investors had priced in a higher second-half growth,” he said.
The retailer sold Storm to the sub-brand’s management for an undisclosed sum that was not material to earnings, saying the unit was not a core business.
Instead, Hallenstein Glasson planned to focus its efforts on expanding its two major brands.
Storm chief executive Deborah Caldwell, who owns the brand through her newly-established company Blackstar Holdings, said the
With inventory levels under control, it says their products are on trend and selling.
Daniel Kieser
group’s results had nothing to do with the sale of Storm.
“We had no asset value to them,” Caldwell said.
“We congratulate the group on their trading results, and we continue to have a strong and supportive relationship.”
Hallenstein Glasson will make a full earnings statement on September 28. Its shares last traded at $5.53 and have gained 40 per cent so far this year.
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