26 Sep 2011

Discounting takes toll at retailer

11:23 am on 26 September 2011

Hallenstein Glasson's annual profit has fallen, as the clothing retailer was forced to discount stock due to a long warm summer and store closures following the earthquake in Christchurch.

The company's profit fell 6.6% to $18.3 million in the year to August, compared with the year before. Group sales fell 0.8% to $205.5 million.

The amount of profit made on sales also fell slightly, as the retailer was forced to discount excess stock.

Within the group's stores, Glassons New Zealand's profit fell 14%, Glassons Australia made a loss of $248,000, Hallentstein's profit rose 9.2% and Storm's profit rose 62.5%.

Chief executive Graeme Popplewell says the retail environment across the Tasman is even more challenging than in New Zealand.

Hallenstein Glasson's sales for the first seven weeks of the new financial year are tracking ahead of the same period last year.

The company will pay shareholders a final dividend of 17 cents per share.

Shares in the company rose by 17 cents, more than 5%, to $3.35 each on Monday morning.