New Zealand apparel empire Hallenstein Glasson has discussed its “reversal”, as it adjusts to new management.
The group recently reported a decrease of 40 per cent in net profit, for the six months ended February 1, 2014, to $6.177 million, down from $10.371 million last year.
Commenting on the result, former CEO Graeme Popplewell said that while the early winter figures were only a modest improvement, they are a reversal of the trend that was experienced during the first half of the year.
“The balance sheet remains robust. Inventories are at acceptable levels at $14.589 million and cash reserves stand at $16.4 million, down from $19.312 million at the start of the year.
“We operate in a highly competitive environment which has, of recent times, been increasingly characterised by discounting and sale activity. However, for differing reasons, each chain in the group failed to execute the summer season to potential,” he said.
“There is still considerable work to do to ensure the business recovers earnings to historic levels but we are encouraged by results over the past few weeks. The key winter trading months of May and June will be critical to achieving our targeted earnings for the winter season.”
Popplewell also added that the appointment of Tracy Shaw, after a 15-month search, as new CEO for Glassons, is an important element in returning Glassons to satisfactory performance.
“Tracy, who commenced with us in February, has a wealth of experience in woman’s fashion on an international stage and brings much needed expertise and drive to that brand,” he said.
The Hallestein Glasson group is responsible for womenswear brands Glassons, Hallensteins, and Storm.