Struggling menswear chain slows growth at Hallenstein Glasson
Clothing retailer Hallenstein Glasson said its menswear division struggled in the previous year while its womenswear chain maintained sales momentum for both Glassons New Zealand and Glassons Australia.
Hallenstein announced in its trading update that its menswear chain, Hallenstein Brothers, experienced a challenging season showing low sales and margins on the previous year.
The NZX-listed retailer posted a 3.3 per cent increase in sales for the 12 months ending August 1 to $286.69 million compared to the previous year’s $277.64 million.
Net profit after tax is expected to be within the range of $27.7 million to $28.2 million, an increase of approximately 2.0 per cent on the previous year ($27.4 million).
“Sales growth was maintained throughout the second half of the year for both Glassons New Zealand and Glassons Australia but Hallenstein Brothers experienced a tougher season with sales and margin down on the year,” said Hallenstein managing director Mary Devine.
Devine said the group’s balance sheet and projected future cash flow remains strong and stock levels are also well managed.
Hallenstein said a full profit release will be made to the market on September 27.