Clothing retailer Hallenstein Glasson Holdings has reported strong growth in the New Zealand market for the first half of the 2012 financial year, but its Australian operations have suffered.
The results, for the six months ended February 1, saw a sales rise of 27 per cent overall, with profit for the New Zealand-based company also up to $9 million (AU$7.09 million), from $7 million last year.
Group sales for the period were $108.57 million (AU$85.17 million), an increase of 7.9 per cent on 2011, $100.61 million (AU$78.92).
Individually, profit for Hallensteins was also up, $4.25 million (AU$3.33 million) from $3.60 million in 2011. Sales and same store sales also increased by five per cent each.
Glassons in New Zealand saw a 18.6 per cent rise in profit after tax to $4.08 million (AU$3.20 million), with sales up seven per cent, and same store sales also increased by eight per cent.
In contrast, Glassons in Australia saw a loss in profit – AU$204,000, down from AU$652,000 in 2011. Sales and same store sales, however, were up 13 per cent.
Hallenstein Glasson Holdings CEO Graeme Popplewell said the sales improvement had been achieved despite a difficult retail environment in both New Zealand and Australia. He also said record Christmas sales and a strong January had underpinned performance in the New Zealand market particularly.
“It has been particularly pleasing to see the sales improvement in Australia where we are clearly gaining market share in a very competitive environment. However there is still some way to go in Australia before we can return a level of profitability acceptable to the board,” he said.
Looking ahead, Popplewell said the first eight weeks of the new season have shown sales growth of seven per cent, but it it expected that it will be a difficult challenge to continue the earnings momentum over the balance of the financial year.
“In both New Zealand and Australia fiscal policy will do little to improve consumer spending, and the negative impact of reduced government spending is beginning to be felt,” he said.
“[However], sales on the internet continue to present an opportunity and strong progress has been made over the past six months in growing our sales on the internet. We will continue to give strong focus to our digital stores which will clearly become an increasingly significant part of the business in the future.”
On the bricks-and-mortar front, Popplewell revealed the retailer will continue to invest in its physical retail network, across both New Zealand and Australia.
“We are continuing to improve our offer in our bricks-and-mortar stores, and invest in our store presentation,” he said.
“At the end of March Glassons will unveil a newly refurbished store in Queen Street Auckland that will represent the pinnacle of the brand. In Australia, the first Queensland store will open at Carindale Brisbane on March 29. Further stores will be opened in Australia as suitable sites become available.”