AUCKLAND: New Zealand retailers continue to be battered in the midst of the country's economic meltdown with clothing retailer Hallenstein Glasson forecasting a drop of 40 per cent drop in profits for the six months to February 1.
In an update to NZX yesterday (February 4), the company forecast profits of between $A4.2 million and $A4.4 million - a drop from $A7.29 million for the same period last year.
The statement showed sales for the full six months ended February 1, 2009 were down - 2.84 per cent on the same period last year.
Sales for the key month of December 2008 showed a decline of -4.6 per cent on last year. While key trading days leading up to Christmas and Boxing Day sales were strong, they were not sufficient to make up for the weak sales experienced in early December. January sales showed a slight improvement at +1.90 per cent on the prior year.
Directors said the result was as a result of New Zealand's "intensively competitive" retail environment which had seen a reduction in interest rates with the resulted there was lower interest income on cash reserves and a cumulative impact on increased costs.
A full profit announcement for the period will be announced to the NZX on March 27.
The slump prompted a fall in the value of New Zealand shares, sending the NZX 50 Index to its biggest drop in more than a week. Hallenstein shares were trading at $NZ2.19 at the time of press.