26 Sep 2013

Profit drop for Hallenstein Glasson

8:48 pm on 26 September 2013

Listed clothing retailer Hallenstein Glasson's annual profit has fallen following a downturn in its Glassons brand, with its Australian arm recording a loss.

The company's net profit fell 11% to nearly $19 million in the 12 months to the start of August, compared with more than $22 million last year.

Hallenstein Glasson was not immune to the long, warm summer and dry, warm autumn which plagued other retailers.

The company operates the Hallenstein, Glasson and Storm clothing chains and says its performance in the first half was satisfactory, but the winter season has been disappointing.

Sales at menswear line Hallenstein Brothers increased by 5% while its profit after tax improved by nearly 18%. The company says it has made excellent progress in a challenging market.

Higher-end womenswear brand Storm opened its first store in Australia during the year, and its sales increased nearly 25%, with net profit also rising 17%.

However, sales at Glassons on both sides of the Tasman offset the good performances elsewhere, with winter proving a challenge.

In New Zealand, sales fell 3% and net profit was down nearly 22% as a result of reduced profit margins.

In Australia, sales did increase 6.5% but same-store sales fell, and reduced margins meant the business booked a loss of more than $1 million. About half the loss was a result of store relocation and restructuring.

Hallenstein Glasson will pay a final dividend of 17.5 cents.