13 Dec 2013

Retailer desperate for clothing sales to pick-up

7:00 am on 13 December 2013

Hallenstein Glasson is desperate for clothing sales to pick-up so it can recover lost ground from the start of the summer season.

Chairman Warren Bell told the retailer's annual meeting on Thursday that if sales don't improve, the company's forecast of a 20% fall in profit for the first half of the financial year will come under pressure.

Clothing retailers are competing with a myriad of international online shops and heavy domestic discounting.

Hallenstein Glasson says this competitive market is driving its sales down and the decline is most noticeable in its womenswear businesses.

Company sales from August to 8 December fell 7% compared with the same period last year.

Mr Bell said the company is now at the business end of the season and the success or otherwise of the next few weeks will have a significant influence on profit.

He said it's difficult to predict trading over the next few weeks, but if sales don't improve to above last year's level, the forecast first-half profit decline will come under even more pressure.

Hallenstein Glasson will provide another update in January.