WELLINGTON: New Zealand fashion retailer Hallenstein Glasson Holdings has blamed falling consumer confidence for its 25 per cent slide in full year profits. The company reported an annual net profit of $15.86 million for the year ended August 1, compared with $21.3 million last year. Although Australian sales had increased by five per cent, overall group sales were down 3.2 per cent to $193 million.
Group sales for the new financial year were already down nine per cent on last year.
Chairman Warren Bell said he was hopeful the prospect of further tax and interest rate cuts would see an improvement in the group's New Zealand operations, where sales had fallen by 11 per cent in fiscal 2008.
“The cumulative impact of increased fuel, food, mortgage and rent costs on our customers coupled with a global melt down of financial markets, has seen consumer confidence fall to a low not experienced for many years,” he said.
The company's aggressive retail rollout strategy has been sidelined until market conditions improve.