Hallenstein Glasson grows sales in first half, but expects profit dip
Fashion retail group Hallenstein Glasson announced it had earned group sales of $160.3 million in the six months to 1 February 2020 – an increase of 5.7 per cent over the $151.7 million earned the year prior.
While fully audited results will be released in late March, the business projected unaudited profit after tax to be 3.1 per cent below the same period last year at between $15.2 to $15.7 million.
The fall is largely due to a $700,000 impact due to the new IFRS 16 leasing standard. However, the business also sold an old distribution centre in Christchurch after constructing a newer centre to better support an increase in online sales, which after costs led to a $900,000 gain.
Like many retailers, Hallenstein Glassons is unsure of how the ongoing threat of coronavirus will impact the supply chain of its brands, and is closely monitoring the situation according to group managing director Mary Devine.
Online sales made up 15 per cent of the group’s FY19 turnover, during which it reported a 6 per cent growth in profit compared to the prior year despite facing margin pressure due to increased promotional activity across New Zealand and Australia.
At the time Devine said the recovery of the Hallenstein Brothers brand was underway, and that it had seen positive customer feedback toward its new range.
Glassons New Zealand said it was hoping to improve its online offer in FY20, and would be investing in digital throughout the year ahead.
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