Australian sales appear to be the one positive in an otherwise “difficult” trading period for New Zealand apparel group Hallenstein Glasson.
The company, which owns fashion and retail brands Glassons, Hallensteins and Storm, reported sales for the 17 weeks to May 29 had dropped 2.4 per cent on the prior year.
Hallenstein Glasson CEO Graeme Popplewell said while sales in Australia had grown 6.1 per cent during that period, an “exceptionally mild” winter in New Zealand and the closure of earthquake-affected stores in Christchurch meant total turnover failed to match 2010.
“We are already witnessing aggressive discounting in the specialty fashion sector and we anticipate trading conditions in the remaining two months of the financial year will be difficult,” Popplewell said.
“Should the current trend continue the group anticipates margin erosion will be experienced due to an inevitable battle for market share and the need to clear winter stock levels.”
Popplewell added that profit after tax for the first half of 2010/11 was down 16.5 per cent on the prior year, and full year profit was likely to see a similar dip.
Hallenstein Glasson is a publicly listed company headquartered in Auckland. The company operates in excess of 110 stores including 25 Glassons stores in Australia. The business was formed in 1985.