Hallenstein Glasson issues second profit warning
Listed clothing retailer Hallenstein Glasson expects its first-half net profit to drop by almost 40 per cent.
The company's shares opened at $3.70 this morning, a 12.9 per cent drop from yesterday's closing price of $4.25.
Hallenstein Glasson expected to report a net profit of between $6 million and $6.3m for the six months to February 1, a drop of 39 per cent from a half-year net profit of $10.3m the previous year, the company said in a market announcement this morning.
The retailer said its earnings were affected by poor sales across the group in December.
The company, which includes Hallensteins, Glassons and upmarket womenswear chain Storm, said group sales were down 10 per cent in December 2013 compared to December 2012.
It had untaken a review of the performance of all its brands and identified areas that were a factor in this downturn, Hallenstein Glasson said.
"Steps are being put in place to rectify these areas."
The further downgrade follows a profit warning from the company in November, when it warned investors it expected its first-half net profit to fall by 20 per cent compared to last year, to $8m.
The listed clothing retailer had an annual net profit of $18.7m, down 11.2 per cent for the year to August 1.
Half-year results would be released March 25.
The company's shares last traded at $4.25, 20.6 per cent lower than a year ago.