Hallensteins defies the odds

Hallensteins DunedinHallensteins has beat the odds of the stagnant retail market, posting a six month profit increase of 39.8 per cent to $8.6 million.

Group sales increased 4.2 per cent to $110.8 million.

CEO, Graeme Popplewell, said the company is pleased with the progress made in regaining marketshare.

“The critical trading period of December and January was particularly robust, and we have seen that momentum carried forward into the first few weeks of the second half of the year. Hallensteins in particular had a very strong season, lifting profit by 52 per cent over the prior corresponding period,” Popplewell said.

After a difficult period last year, the Hallensteins chain has regained its marketshare. Sales increased five per cent for the brand, driven by a better product offering and improved margins.

Glassons in New Zealand struggled in the first four months of the summer season, but from December onwards has shown consistent improvement. For the summer season, both sales and gross margin were flat on the prior corresponding period, while Glassons in Australia made good progress with same store sales in local Australian currency up 10 per cent, and total sales up 16 per cent.

In October a new store concept rolled out at Bondi Beach, and at the redeveloped Macquarie Centre, both in Sydney. Results from the new concept stores have been very strong and provide a key for future growth. A new store in Brisbane will be opened in the next few months, with other sites are under evaluation.

The new Glassons store concept will also be rollout across NZ, with the first refit in Albany scheduled for late in the winter season.

Storm lifted net profit after tax by 20 per cent on flat sales. Improved margins through tighter buying was a key feature of the season. A strong December and January helped profitability and growth has continued into the winter season.

Popplewell said the first seven weeks of the 2015 winter season have been encouraging, with group sales increasing 14 per cent on last year and all chains performing well.

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