HLG
27/03/2015 08:32
HALFYR
PRICE SENSITIVE
REL: 0832 HRS Hallenstein Glasson Holdings Limited
HALFYR: HLG: HLG half year result: 6 months ending 1 February 2015
Hallenstein Glasson Holdings Limited
Results for the 6 months ended 1 February 2015
The Directors advise the unaudited Group Net Profit after Tax for the 6
months ended 1 February 2015 was $8.638 million, an increase of 39.8% on the
prior corresponding period ($6.177 million).
Group sales increased 4.2% to $110.865 million.
Commenting on the result Group CEO Graeme Popplewell said "we are pleased
with the progress we have made in regaining market share. The critical
trading period of December and January was particularly robust, and we have
seen that momentum carried forward into the first few weeks of the second
half of the year. Hallensteins in particular had a very strong season,
lifting profit by 52% over the prior corresponding period. "
Hallensteins
After a difficult period last year Hallensteins have regained their market
share and have had a robust season. Sales increased 5% and net profit after
tax 52%. This was driven through a better product offering which achieved a
strong sell through resulting in improved margin on sales.
Hallensteins innovative marketing campaigns have resonated with the consumer
and the brand is well placed to capitalise on its success in the coming
months with the new winter season opening strongly against last year.
Glassons
Glassons in New Zealand struggled in the first 4 months of the summer season,
but from December onwards have shown consistent improvement. For the summer
season both sales and gross margin were flat on the prior corresponding
period.
There has been a strong improvement in product offering and the branding
campaign which commenced late 2014 has helped build awareness and in creating
a strong brand identity.
The turnaround since December has continued into the new season.
In Australia Glassons made good progress with same store sales (in $A) +10%,
and total sales +16%.
During October a new store concept was rolled out in a new location at Bondi
Beach, and also in the redeveloped mall at Macquarie (Sydney.) Results from
the new concept stores have been very strong and provide a key for future
growth.
A further store in Brisbane will be opened during winter 2015, and other
sites are currently being evaluated.
Winter 2015 has also opened well in Australia.
The new Glassons store concept will also be deployed in New Zealand, with the
first refit in Albany scheduled for late in the winter season.
Storm
The Storm brand lifted net profit after tax by 20% on flat sales. Improved
margins through tighter buying was a key feature of the season.
In common with Glassons a strong December and January helped profitability
and that growth has continued into the commencement of winter 2015.
Dividend
The balance sheet remains robust and stock levels remain controlled.
The directors have recommended an interim dividend of 14.50 cents per share
(last year 12.00 cents) payable 17th April 2015. The dividend will be fully
imputed.
Future Outlook
The first 7 weeks of the 2015 winter season have been encouraging with group
sales +14% on last year with all chains performing well. The key winter
trading months are yet to come so it is premature to project season results
at this stage.
Each chain is in a strong position to capitalise on results so far and are
approaching the season with confidence.
Graeme Popplewell
CEO
+64 21738728
27 March 2015
End CA:00262342 For:HLG Type:HALFYR Time:2015-03-27 08:32:04
