Hallenstein Glasson has copped a 24 per cent drop in annual profit - but says the outlook isn't all bad.
The retailer saw profit fall to $NZ14.3 million ($AU13.31 million) for the year to August 1.
This was from $NZ18.7m ($AU17.01 million) the previous year, with sales falling 5.5 per cent to $NZ208 million ($AU189.89 million).
However, the profit result was above the company’s forecast of $NZ14 million ($AU12.73 million) to $NZ14.2 million ($AU12.92 million).
The retailer also confirmed stores are currently trading stronger than the first few weeks of the previous financial year.
It wons Hallensteins, Glassons and Storm Clothing chains across Australia and New Zealand.
It is understood the first half of the year hit Hallenstein Glasson's hardest, when poor December sales contributed to a 40 per cent drop in interim profit.
CEO Graeme Popplewell said the start of fiscal 2015 has seen group sales up four per cent on the prior year.
“Whilst there have been external influences that have been detrimental to trade, the majority of the difficulties we have faced have been due to internal factors that saw poor execution of planning and buying, particularly in the first half of the year.
“We have taken appropriate steps to ensure there is no recurrence of those circumstances and are starting to see the results of those efforts.”