Glassons Australia
Sales were -5.6%, and profit after tax fell to a loss of $652,000. Glassons Australia experienced similar conditions to New Zealand, and suffered very strong competition in that market for the two months leading up to and during Christmas.
Hallensteins
Sales lifted 3.7% and net profit was up 16.7%. A new management team implemented a number of changes which brought positive results. Changes included a new advertising agency and new branding.
Storm
Storm sales lifted 27.2% (same store 4.7%). Net profit improved 31.8%. A new store was added in Willis Street (Wellington) and the brand continues to make very good progress.
Events since 1 February 2011
The Christchurch earthquake on 22nd February has had an impact on turnover to varying degrees in all of the groups 14 stores in Christchurch. As at 24th March, 7 stores remain closed:
Both Hallensteins and Glassons have stores that remain closed in The Palms shopping Centre, South City, and in the central city. Storm has one store closed in the central city. The Palms is expected to re-open in July, and South City in the next few days. The remaining 3 stores in the central city remain uncertain and it could be some time before we are in a position to evaluate the likelihood of them reopening. Insurance for loss of profits and material damage is in place which will protect earnings for the current financial year.
Future outlook
Group sales for the season to date are -3.7% on the prior year. If we adjust for the impact of closed stores in Christchurch then sales are flat on last year.
Glassons in Australia has shown a steady improvement since January which is particularly encouraging given the competition it faces in that market. During the past two months we have refurbished 5 stores in Australia with a new Glassons concept. A further refurbished store opens next week and in April an additional store will open at Hurstville in Sydney.
These stores are showing positive results although more time is needed to evaluate their ultimate success. The general economic environment can best be described as “challenging”. The rising cost of food and petrol has an immediate impact on our customers, and any benefit received from lower tax has been offset by price increases in these core consumer items. We have a business with a clean balance sheet, highly experienced management and the strength to compete in what we see will be a very demanding market over the balance of the year.
Hallenstein Glasson Holdings Limited is a retailer of menswear and womenswear, listed on the New Zealand Stock Exchange.
Hallenstein Glasson Holdings Limited
20240830145952.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
