24 Sep 2009

Hallenstein Glasson profit cut

2:07 pm on 24 September 2009

Hallenstein Glasson's annual profit has fallen 19% compared to the previous year, despite a modest rise in sales.

The clothing retailer made a profit of $12.8 million in the year to August, while sales rose 2% to just over $198 million.

The company says the battle for market share in a tough retail environment squeezed margins.

Hallenstein Glasson performed better in the second half of the year, when profit was up 10%, thanks to strong performance at its Australian Glassons stores.

Chief executive Roy Dillon says margins fell as the company cut prices to lure customers into its stores, but he is optimistic that it won't have to discount as much as the economy picks up.

The company will pay a dividend of 11 cents a share, up from 10 cents last year.