Retailer issues profit warning

NATIONAL: A major Australasian retailer has signalled a downturn in sales as consumers hit by the rising cost of living tighten their belts. New Zealand-based clothing retailer Hallenstein Glasson has announced it expects its annual profit to be 28 per cent down on last year's result, with sales so far this year down six per cent.

The company's main business comprises young women's retail fashion brand Glassons and young men's urban brand Hallensteins. Glassons operates around 25 Australian stores across Victoria and New South Wales.

According to Hallenstein Glasson CEO Shayne Quanchi the downturn was occurring on both sides of the Tasman, and the company currently anticipated a full year profit by August of around $15 million, down from $21.3 million last year.

Quanchi described the current trading environment as "the most challenging" the company had witnessed for a number of years.

Hallenstein Glasson has responded to flatlining consumer confidence by implementing discounting and promotional initiatives to ensure it  does not have to carry excess stock during the downturn, thereby contributing to the profit slide.