Hallenstein Glasson’s profit was down almost 4 per cent year on year in the first half of FY20, and the clothing company has cancelled its dividend payout.
The group, with operations in both New Zealand and Australia, posted a decrease of 3.8 per cent in net profit after tax to $15.44 million, down on the $16 million it posted a year earlier.
The company’s total sales in the six months to February 1 were $160.2 million, a 5.7 per cent increase compared to the same time last year, with gross margins down about 1.5 per cent in the period.
The company also announced that will not to pay an interim dividend due the uncertainty around the impact of COVID-19 and announcements made by the Prime Minister on moving New Zealand to Alert level 4 last month.
According to Hallenstein Glasson, this will be reassessed at the end of its financial year in August 2020.
The company saw an increase in digital sales in the first half to over 15 per cent of total sales.
“As a business we remain focused on continued investment in digital and social channels to deliver inspiring and relevant content to our customers,” said Mary Devine, group managing director.
Glassons New Zealand, Glassons Australia and Hallenstein Brothers now all have larger fulfillment centers to allow for continued online growth.
The company’s web store in Australia continues to trade.
The group said it has also applied for the New Zealand government wage subsidy scheme in order to support employees wages during this uncertain time.