26 Sep 2012

New stores, upgrades boost Hallenstein Glasson profit

11:07 pm on 26 September 2012

Listed clothing retailer Hallenstein Glasson's annual profit has risen following the opening or upgrading of Glassons stores in New Zealand and Australia.

The company operates the Hallenstein, Glassons and Storm clothing chains and made a profit of $21 million in the year to the start of August - an increase of 15% compared to the previous year.

Sales rose 5% to $215.5 million, bolstered by its Glassons stores.

The company says refurbishing Glassons stores in New Zealand has translated into higher sales, while in Australia, sales have been boosted by opening stores in Melbourne and Brisbane.

Sales in the Hallensteins and Storm brands also improved. The retailer says it lifted market share despite what it calls an unhelpful economic environment.

Despite the annual profit profit increase shares in Hallenstein Glasson fell 1 cent to $4.60.

Craig Investment head of research Mark Lister says the results were good in tough trading conditions and were higher than expected.

He says the company is well managed and obviously had the right products in the right stores.

Mr Lister says the refurbishments that have been done across a lot of the stores have obviously brought in more customers.

Looking ahead, Hallenstein Glasson says sales have increased 7% in the first seven weeks of trading in the new year.

However, it remains wary about its prospects as it deals with prudent consumers and the growing trend to shop online for cheaper deals.

The company will pay a final dividend of 19 cents per share.