Corporate

Hallenstein Glassons posts $29m profit

Hallenstein Glassons has had a modest lift in sales and profits, helped by growth in Australia and online sales.

Its net profit for the year to August was up 6 percent to $29 million, while sales grew 3 percent on a year ago.

Managing director Mary Devine said the company's margins have fallen by more than 1 percentage point.

"The main factors being the lower US dollar exchange rate and the increased promotional activity across both the New Zealand and Australian markets."

However, costs had been kept in check to counter margin erosion.

The Glassons women's fashion brand had strong growth in Australia, and online sales were becoming a more important component.

The Hallenstein men's fashion chain had fractional sales growth, partly because of milder weather and what the company called "challenges with the product offering".

It said it had moved to improve its product range and was already seeing increased sales.

The company is building distribution hubs to cater for growing online sales, which made up 15 percent of group turnover.

Devine said sales for the first two months of the new trading year were more than 7 percent up on last year, although she warned the lower exchange rate was keeping pressure on its margins, while the trading environment was challenging going into the key end of year trading period.

The final dividend was held at 24 cents a share, making a full year pay out of 44c.

This article was originally published on RNZ and re-published with permission.

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