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- Release Date: 13/06/13 10:50
- Summary: FORECAST: HLG: Trading update and earnings guidance
- Price Sensitive: No
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HLG
13/06/2013 08:50
FORECAST
REL: 0850 HRS Hallenstein Glasson Holdings Limited
FORECAST: HLG: Trading update and earnings guidance
13 June 2013
Hallenstein Glasson Holdings Limited
Trading update and earnings guidance for the 12 months ended 1 August 2013
Late start to winter to impact earnings for second half
A late start to winter has meant earnings for the current winter season will
not match last year.
Group sales for the period February to May were -1.6% on the same period last
year, with Glassons in both NZ and Australia bearing the brunt of difficult
trading conditions.
"Whilst menswear business Hallenstein Brothers had continued to benefit from
its repositioning in the market and from innovative marketing, Glassons has
found itself operating in an environment characterised by aggressive
discounting and price based promotion" said CEO Graeme Popplewell. "The
larger Australian chains who comprise most of our competition in volume
fashion womenswear have commenced winter clearance earlier than usual which
is a sign trading isn't up to expectations. As a result there is now
considerable pressure on margin for the balance of the winter season.
The Storm chain of stores has remained apart from this sector of the market
and has continued to trade to expectations.
It is now clear we will not match earnings for last year and coupled with the
receipt of insurance monies which bolstered second half earnings last year by
$1.949 million, profit for the winter season will be below our expectations
set at the start of the season.
Full year net profit after tax is expected to be in the range of $18.5 to
$19.5 million, a decrease of approximately 10% on the prior year.
Because we maintain close control over our stock levels we do not expect to
close the season with excess stocks, and the balance sheet will retain its
strong position. On that basis the total dividend stream for the year can
remain unchanged although that will need to be subject to close scrutiny if
earnings continue to deteriorate."
A further market update will be provided mid August following the close of
the financial year.
Graeme Popplewell
CEO
+64 21738728
End CA:00237338 For:HLG Type:FORECAST Time:2013-06-13 08:50:56
