23 Sep 2016

Hallenstein Glasson annual profit drops 21 percent

3:08 pm on 23 September 2016

Clothing retailer Hallenstein Glasson has reported a 21 percent fall in its annual profit because of a late start to winter, management problems and a lower dollar eating into margins.

The company's profit for the year to August was $13.7 million compared with $17.4m the year before.

The result was in line with guidance the company gave last month.

Group sales were little changed at $223.5m.

Hallenstein Glasson's December sales fell.

Photo: RNZ

It said the lower profit was caused by a mix of seasonal and business factors.

A warm start to winter hurt sales, forcing it to discount prices, while a lower dollar reduced its gross margins because it paid too much for currency protection.

It also said sales at the Glassons women's clothing chain also suffered from ineffective management, which it had tackled by appointing former Pumpkin Patch chief executive Di Humphries.

Sales at its boutique fashion chain Storm were down on a year ago, while online sales were showing the strongest growth of any part of the group and were now accounting for 7 percent of all sales.

The company said the new trading year had started stronger, with sales up 9 percent on the same time last year.