A devastating earthquake and warm winter have contributed towards a decline in sales and profit for clothing retailer Hallenstein Glasson Holdings.
The New Zealand group, which owns women’s fashion stores Glassons and Storm and menswear chain Hallensteins, has today revealed its 'satisfactory' annual report for the year ending August 1.
The audited net profit after tax for the 12-month period was $18.283 million, compared to $19.581 million in 2010 - a decrease of 6.6 per cent.
Group sales were $205.485 million, against $207.139 million in 2010, which is a 0.8 per cent decrease.
Chairman of directors Warren Bell said the second half of the year, the winter season, was an improvement on the second half of last year.
“The 2011 financial year has been an exceptional challenge and given the environment we have had to work with, the board considers the result satisfactory,” Bell said.
“During February to July we had to contend with the warmest winter recorded in New Zealand for some time, which was not conducive to apparel sales.
“In addition the Christchurch earthquake resulted in seven of our stores closed for the balance of the season.
“Accordingly we believe we have made the most of a trying period.”
The gross margin on sales fell from 56.95 per cent to 56.52 per cent.
Bell went on to say the warm winter meant they had to aggressively discount stock to clear before the end of the season and the closure of stores due to the earthquake resulted in carrying excess stock, originally intended for those stores which had to be cleared.