HLG
23/03/2016 16:36
HALFYR
PRICE SENSITIVE
REL: 1636 HRS Hallenstein Glasson Holdings Limited
HALFYR: HLG: Results For The 6 Month Period Ended 1 February 2016
HALLENSTEIN GLASSON HOLDINGS LIMITED
RESULTS FOR THE 6 MONTH PERIOD ENDED 1 FEBRUARY 2016
The Company advises that total group sales for the 6 month period ended 1
February 2016 were $112.399 million, an increase of 1.4% over the prior
corresponding period ($110.865 million).
Net Profit after Tax (unaudited) was $6.817m, a decrease of -21.1% of the
prior corresponding period ($8.638m).
Whilst top line sales have been maintained in a very challenging environment,
margin pressure due to a lower exchange rate has had a negative impact on
profit.
Gross margin on sales was 56.79% compared with 60.42% in the prior
corresponding period.
Total expenses fell -1.4% reflecting a concerted effort by management to
soften the impact of reduced margin and further cost refinement will continue
in the current trading period.
With the exception of Glassons in New Zealand, all brands achieved positive
sales growth.
Hallensteins continued to show strong sales growth with sales up 6% on last
year.
Since February there has been significant focus on improving the fashion
offer in Glassons that should help improve future trading performance.
During the period Glassons refurbished a key Auckland store at St Lukes.
In addition new stores were opened in October 2015 in Northwest (Auckland)
for both Hallensteins and Glassons, while Hallensteins closed one store at
Westgate (Auckland) at the same time.
During the second half of this financial year Glassons will move to larger
premises in Eastlands (Melbourne), and Castle Towers (Sydney) and Storm will
refurbish new premises in Lambton Quay, Wellington.
Dividend
On 4 February the Directors declared an interim dividend of 13.5 cents per
share (last year 14.5 cents per share) payable 15th April 2016.
Future Outlook
Group sales for the first 7 weeks of the season are on a par with last year
although there remains pressure on margin. The record temperatures in both
New Zealand and Australia have not been conducive to early autumn sales and
the retail environment in fashion apparel remains challenging.
On a more positive note our ecommerce business continues to outstrip growth
in bricks and mortar stores, with sales for the first 7 weeks of the season
up 38%. We anticipate this trend to continue and continue to put focus and
investment into this part of our business.
Graeme Popplewell
CEO
23 March 2016
End CA:00279787 For:HLG Type:HALFYR Time:2016-03-23 16:36:39
