Profit plunge for Hallenstein Glassons
Hallenstein Group's Glassons Australia stores have dragged down its half-year net profit, which slumped by 40 per cent to $6.17 million.
The NZX-listed retailer has 28 stores throughout Australia's eastern seaboard, which contributed a $1.24m loss to the group.
The New Zealand Glassons stores by contrast contributed a $3.1m net profit to the group and the Hallenstein brand contributed a $3.8m net profit.
Group-wide revenues for the six months to February 1 were $106.4m, down 8 per cent on the same period last year.
Operating costs were also down from $54.3m to $53.6m, a 1.3 per cent dip.
Shares in Hallenstein Group remained unmoved by the news, trading this morning at $3.02.
Chief executive Graeme Popplewell said sales for the first six weeks of the winter 2014 season were up 2 per cent on the winter 2013 season.
Popplewell said the early winter figures were only a modest improvement, but a reversal of the trend that was experienced during the first half of the year.
He said May and June sales would be key to delivering a strong result, after an underwhelming summer season.
"We operate in a highly competitive environment which has, of recent times, been increasingly characterised by discounting and sale activity.
"However, for differing reasons, each chain in the group failed to execute the summer season to potential," Popplewell said.
The appointment of Tracy Shaw as chief executive of the Glassons Australia, formerly with retailer Jag in Melbourne was key for the group turning its Australian investment into a money spinner.
"Tracy has a wealth of experience in woman's fashion on an international stage and brings much needed expertise and drive to that brand," Popplewell said.
Shareholders will be paid an interim dividend of 12c a share on April 17, down from 16c a share last year April 17.