Hallensteins Glassons anticipates reporting a higher net profit amid improved sales in the last fiscal year.

In a trading update, the fashion retailer said it expects to report a net profit of between $34 million and $34.75 million in the fiscal year ended August 1, up from $32 million a year ago.

This includes about $1.1 million net non-cash deferred tax expense connected to changes in tax legislation on the deductibility of depreciation on non-residential buildings.

The company saw sales rise 6.3 per cent to $435.6 million. Gross margin also increased by about 200 basis points.

Hallensteins Glassons says it will publish its financial statements on September 30.