NEW ZEALAND: Hallenstein Glasson H1 earnings tumble
- H1 earnings drop to US$6.4m
- Sales down 8%
Clothing retailer Hallenstein Glasson was hurt by heavy discounting in each of its divisions over the key summer season, leading it to a drop in first-half earnings and sales.
CEO Graeme Popplewell said the results were in line with guidance provided earlier this year. Total comprehensive income for the six months ended 1 February dropped to NZ$6.4m (US$5.5m) from NZ$10.3m a year earlier.
Group sales were down 8% to NZ$106.4$m versus revenues of NZ$115.7m in the year ago period.
Popplewell said that while the early winter figures were only a modest improvement, they have reversed the trend seen during the first half of the year.
"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," he said.
"There is still considerable work to do to ensure the business recovers earnings to historic levels but we are encouraged by results over the past few weeks. The key winter trading months of May and June will be critical to achieving our targeted earnings for the winter season."
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