20 Jan 2014

Hallenstein Glasson shares fall after profit downgrade

11:36 am on 20 January 2014

Hallenstein Glasson shares shed nearly 10% last week after the company's second profit downgrade so far in its current financial year.

The clothing retailer says sales in December fell 10% which will mean net profit for the six months ending 1 February will be down nearly 40%.

Last week, chief executive Graeme Popplewell said his company failed to have the right balance of product and wasn't offering its customers what they wanted.

He said a review of the performance of all the company's brands identified areas which contributed to the profit downturn and it was taking steps to rectify problems.

Milford Asset Management retail analyst Victoria Harris says it wasn't just one thing which went wrong for Hallensteins, but factors such as the increasing presence of online retailers, structural issues within Hallestein Glasson and more international competition.