Fashion house Hallenstein Glasson has seen sales drop 10 per cent during the first 20 weeks of the new financial year, according to chairman Warren Bell.
At the business’ AGM, held on Tuesday, Bell said the sales drop was largely caused by store closures across both New Zealand and Australia due to Covid-19 breaking out across both countries.
According to Bell, all stores are now operational and open again.
“While we are pleased to have all stores operating again, we will continue to be cautious in regard to the future impacts of Covid-19 on customer confidence and the spending patterns around the Christmas and New Year period,” Bell told shareholders.
Chief executive Stuart Duncan also noted the group had seen difficulties during the first three months of FY22, particularly across Auckland, New South Wales and Victoria, but that the group was confident in its medium-term prospects – particularly across Australia and the United States.
“Freight is improving with costs coming down and less disruption and borders opening up allows our teams to travel again, allowing better interaction with suppliers and overseas buying trips,” Duncan said.
“We are aware that there will continue to be disruption ahead, but the commitment and agility of our team at Hallenstein Glasson enables us to be equipped to face challenges and respond proactively.”