Ann: FLLYR: HLG: HLG Full Year Result for the per

• Release Date: 26/09/13 10:30
• Summary: FLLYR: HLG: HLG Full Year Result for the period ending 1 August 2013
• Price Sensitive: No
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					HLG
26/09/2013 08:30
FLLYR

REL: 0830 HRS Hallenstein Glasson Holdings Limited

FLLYR: HLG: HLG Full Year Result for the period ending 1 August 2013

RESULTS FOR THE FULL YEAR TO 1/8/2013

The directors advise that the audited net profit after tax for the 12 months
to 1 August 2013 was $18.669 million, a decrease of -11.18% over the
corresponding period last year ($21.020 million).
Group sales for the period were $220.117 million, an increase of 2.10% over
the corresponding period last year ($215.581 million).

Total Group Comprehensive Income for the period was $20.055 million, ($22.259
million). Included in Comprehensive Income is a gain of $1.179 million on
revaluation of the Group's property portfolio.

Whilst performance in the first half of the year was satisfactory, results
for the winter season have been disappointing.
Both Hallensteins and Storm brands performed to expectations, but Glassons in
both New Zealand and Australia have felt the full brunt of a record mild
winter and aggressive discounting in the womenswear marketplace during the
past 6 months.
Notwithstanding a decline in profit, the balance sheet remains strong. Stock
levels are comparable with the previous year and cash reserves stand at
$19.312 million. The group remains debt free.

DIVIDEND

The Directors have resolved that a final dividend of 17.5 cents per share
will be paid on 6th December 2013 to shareholders on the company's register
as at 5:00pm 29th November 2013. Together with the interim dividend of 16
cents per share paid 19th April 2013 the dividend for the full year is 33.5
cents per share, unchanged from last year.  Future dividend will be dependent
on Group trading performance and capital expenditure requirements.

SEGMENT RESULTS

Hallenstein Brothers
Sales for the year increased 5.33% and net profit after tax improved 17.71%.
Hallensteins continued to redefine its position in the market and has made
excellent progress in a challenging market.
During the period 3 non strategic stores were closed:
- Newmarket in July 2013
- Pakuranga in March 2013
- Masterton in July 2013.

Storm
Sales for the year increased 24.06% (same store 19%) and Net Profit after Tax
improved 17.23%.
Since balance date Storm has opened its first store in Australia in Chapel
Street Melbourne.

Glassons New Zealand
Sales for the year were -3.14% on the prior year, with the winter season
proving to be a difficult challenge. Reduced margin resulted in a decline in
profit of -21.77% for the full year.

Glassons Australia
Sales for the year (in Australian Dollars) increased 6.45%, with same store
sales -5.53%.
Reduced margin saw profit decline to a loss after tax in NZD of -$1.161
million. Included in that loss is a pre tax amount of NZD 500,000 incurred
for store relocation and restructuring.
During the year we opened a further three stores:
- Chermside (Brisbane) in September 2012
- Moorabbin (Melbourne) in March 2013
- Homebush (Sydney) in July 2013
We also closed in Miranda (Sydney) in July 2013 due to Mall refurbishment.
Since balance date we have closed a non contributing store at Geelong.

ECOMMERCE
Sales on the internet have continued to grow and will continue to be a key
focus for each brand. Continued investment is being made in this part of the
business in both technology and people.

FUTURE OUTLOOK
The first 7 weeks of the New Year have been difficult with group sales down
on last year -9%. While this period does not have a significant impact on
earnings for the future period, it does demonstrate how competitive the
environment is at present.
Most of this decline is being felt in womenswear, with Hallensteins
continuing to show solid performance.
During October this year both Hallensteins and Glassons are relocating into
new premises in Lambton Quay, Wellington. These stores will be the largest
footprints for each brand and represent strong brand statements for the
future.
Hallensteins are today announcing a partnership with Ekocycle (a
collaboration with global music artist will. i. am and The Coca-Cola Company)
introducing a collection of men's suits as its latest sustainable product
offering, under Hallenstein Brothers' tailored suit label, H Brothers. A
separate announcement is included with this release. This collaboration is
the first step in exposing Hallensteins to a wider global market. Whilst
longer term benefits are anticipated it may take some time for this
partnership to deliver meaningful financial results.

Hallenstein Glasson Holdings Limited

Graeme Popplewell
CEO
26th September 2013

+64 21 738728
End CA:00241586 For:HLG    Type:FLLYR      Time:2013-09-26 08:30:05