HLG
25/09/2014 08:54
FLLYR
REL: 0854 HRS Hallenstein Glasson Holdings Limited
FLLYR: HLG: HLG Full Year result for the period ending 1 August 2014
HALLENSTEIN GLASSON HOLDINGS LIMITED
RESULTS FOR THE FULL YEAR TO 1 August 2014
The directors advise that the audited net profit after tax for the 12 months
to 1 August 2014 was $14.278 million, a decrease of -23.5% over the
corresponding period last year ($18.669 million).
Group sales for the period were $207.984 million, a decrease of -5.5% over
the corresponding period last year ($220.117 million).
Total Group Comprehensive Income for the period was $14.445 million, ($20.055
million).
The decline in earnings was felt particularly in the first half of the year
when poor December sales contributed to a fall in earnings of -40% on the
prior year. Earnings for the second half of the year saw some improvement as
the season progressed and the winter season sales ended -2.7% on the
corresponding period, with earnings just short of the 2013 winter season at
-2.4%.
Commenting on the result CEO Graeme Popplewell said " the 2013/14 financial
year had been extremely challenging with all the brands in the group failing
to deliver expected results. Whilst there have been external influences that
have been detrimental to trade the majority of the difficulties we have faced
have been due to internal factors that saw poor execution of planning and
buying, particularly in the first half of the year. We have taken appropriate
steps to ensure there is no reoccurrence of those circumstances and are
starting to see the results of those efforts."
Dividend
The Directors have declared a final dividend of 16.5 cents per share, payable
on 5th December 2014 to shareholders on the company's register as at 5:00pm
28th November 2014. Together with the interim dividend of 12 cents per share
paid 17th April 2014 the dividend for the full year is 28.5 cents per share
(last year 33.5 cents per share). The strength of the balance sheet together
with current trading patterns allows us to comfortably accommodate this
payout.
Segment Results
Glassons New Zealand
For the full year sales declined -5.2% and profit after tax was down -14.5%.
The majority of the decline was in the first half of the year when profit was
-33.8% down on the prior year.
The second half of the year saw some improvement with sales increasing over
the corresponding period by 0.5%, and profit after tax increased 9.0%.
During August Tracy Shaw, the recently appointed CEO for Glassons resigned
due to family reasons. Page Executive, London have been appointed to
undertake a global search for a replacement candidate.
Glassons Australia
Expressed in Australian dollars sales declined -1.73% however the movement in
the exchange rate with the New Zealand dollar translated into a -13% decline
in NZ$.
A loss for the year after tax of -$1.505 million was incurred, the majority
of which was in the first half of the year.
The second half sales in Australian Dollars were +2.3% and in NZ dollars
-10.4%. A net loss after tax of $0.262 million was incurred in the second
half.
Hallensteins
For the full year sales declined -1.8% and profit after tax declined -18.6%.
Second half sales were -2% and profit after tax -8%. The warm winter had a
stronger influence on menswear than on womenswear which is more trend rather
than climate driven.
Storm
After a record year in 2013 Storm struggled to maintain momentum during the
financial year.
Sales for the full year declined -7.4% and profit after tax was down -56%.
Sales in the second half were -5.8% and profit after tax -46.1%.
Considerable focus as gone into reversing this trend and we are now seeing
sales return to historic levels.
E-Commerce
Sales on the internet continue to play an increasing part in the business.
Web sales now account for 5% of group turnover. Our policy remains to
continue to invest resource in this channel and there is a strong focus to
gain further growth. For the new year to date sales have increased 7% over
the prior year.
Future Outlook
The first 7 weeks of the new financial year have been encouraging with group
sales +4% on the prior year. All chains in the group are trading above last
year. There has also been a solid improvement on gross margin over last year.
This is the result of exiting winter with stocks well managed and also a
positive customer reaction to new season merchandise.
We have continued to invest in our stores, with store refurbishment in a
number of locations planned over the next few months. Hallensteins will move
to newer and larger premises in Dunedin and in also in Queen Street Auckland.
Glassons will also upgrade its Queen Street Auckland store. Our new large
format store in Lambton Quay which opened October 2013 has been very
successful for both Hallensteins and Glassons and our further investment in
these larger format stores is a result of that success.
We will also launch two new format stores in Australia at Bondi Junction and
Macquarie (Sydney). All of this activity will be completed prior to Christmas
2014.
Later this year Glassons will launch a new brand campaign to reawaken
awareness of the brand. We believe Glassons is well positioned to benefit
from this investment.
It is too early in the season to project results for the first half of the
year, but we are confident the business is in a much stronger position than
it was at a comparable stage last year. There is a strong focus to ensure our
performance over the crucial trading months of December and January is well
executed.
Further guidance will be given at the Annual Meeting of Shareholders in
December 2014.
Graeme Popplewell
CEO
25th September 2014
+64 21 738728
End CA:00255681 For:HLG Type:FLLYR Time:2014-09-25 08:54:09
