Hallenstein delivers 25pc lift in profit

Hallenstein Glasson Holdings (HLG) yesterday reported a 24.9 per cent jump in net profit as the retailer continued to enjoy the post-pandemic trading environment.

Group sales for the 12 months ended August 1 rose 16.7 per cent to $409.7 million, up from $351.2m in the previous year.

Audited net profit after tax climbed to $31.9m, up from the 2022 net profit of $25.6m but lower than the $33.3m net profit in 2021.

Group chief executive Stuart Duncan said the sales performance of HLG’s brands was “well ahead” of the prior corresponding period, which was hit by pandemic store closures.

Covid-19 caused havoc to Hallenstein Glasson’s 2022 financial year and the company’s books, with the loss of 5432 trading days.

Sales in the 12 months to August 1 continued to trade above the 2022 period, although to a lesser amount throughout the second half of the 2023 financial year.

For the Glassons chain, New Zealand delivered a small increase of 7.7 per cent to $112.5m, while Australian sales shot up 21.8 per cent to $191.2m.

Duncan said Hallenstein Brothers sales rose 17.9 per cent to $106m across both markets in the 12 months to August 1.

While online sales dropped 23.5 per cent from the prior corresponding financial period, Duncan said they were still up 71.4 per cent compared to 2019 — the last comparative year that wasn’t affected by the pandemic.

Gross margins were steady at 57.3 per cent, compared to 57.6 per cent in the prior year.

Duncan said the first eight weeks of the 2024 financial year had seen group sales decline by 5.9 per cent. “The current economic conditions and cost-of-living pressures are impacting on the consumers’ spending habits across both countries and brands.”