Clothing group Hallenstein Glasson is expecting annual profit to fall by 5 per cent, landing between $27.2 and $27.8 million, at the end of FY20. 

The group, which trades under the Hallenstein Brothers and Glassons brands, saw unaudited revenue for the year to 1 August remain almost flat at $287.76 million – 0.1 per cent up on the prior period. 

Much of the group’s business has been conducted online in recent months, group managing director Mary Devine said, as the second half saw stores closing, reopening, and closing once again in different parts of Australia and New Zealand. 

“Sales for the six-month period ended 1 August 2020 were down -6.2 per cent on the same period last year, performing much better than anticipated due to the growth in online sales,” Devine said. 

“Online sales grew 80.1 per cent on the same period last year [and] for the full year online sales were 22 per cent of total sales but increased to 31 per cent for the last six months.”

Following Auckland’s move to Level 3 trading restrictions, the business has had to close 13 Hallenstein Brothers and 12 Glassons stores until the restrictions are lifted, putting renewed pressure on the business’ bottom line heading into FY21. The business is currently in negotiations with landlords. 

“Whilst the sales have improved, the company will continue to be cautious in regard to the future impacts of Covid-19,” Devine said. 

“[We] continue to take steps to preserve liquidity as previously stated, particularly managing stock levels and costs across the business.”

Shares in the business rose 19.5 per cent to $4.1 per share on the result.