New Zealand-based clothing chain, Hallenstein Glasson Holdings, has reported an 11 per cent fall in annual profit, near the bottom of guidance, as margins at its womenswear Glasson unit came under pressure.
Net profit fell to $NZ18.7 million ($A16.66 million) in the 12 months ended August 1 from $NZ21m a year earlier, the Auckland-based retailer said.
In June, it said profit would be $NZ18.5m-$NZ19.5m. Sales edged up 2.1 per cent to $NZ220.1m.
“Both the Hallensteins and Storm brands performed to expectations, but Glassons in both New Zealand and Australia felt the full brunt of a record mild winter and aggressive discounting in the women’s wear marketplace during the past six months,” the company said.
Hallenstein has been among a group of clothing retailers who gave profit warnings as tough competition in Australia put a squeeze on margins and as the warm winter kept consumer spending on apparel under wraps.
The company said the first seven weeks of the 2014 financial year had been “difficult” with sales down nine per cent from a year earlier, most of which is in the womenswear segments.
Sales at the retailer’s Hallenstein range rose 5.3 per cent to $NZ81.6m, and boosted profit 18 per cent to $NZ9.1m, while its Storm unit lifted revenue 24 per cent to $NZ9.3m and profit 17 per cent to $NZ1.6m.
Glassons New Zealand, the biggest segment by sales, reported a 3.1 per cent fall in revenue to $NZ88.2m and a 22 per cent slide in profit to $NZ8.4m, and Glassons Australia sales increased 3.7 per cent to $NZ40.9m, while turning a loss of $NZ1.2m.
BusinessDesk
