Clothing retailer Hallenstein Glasson Holdings has posted a 53% jump in full-year profit, helped by better product offerings and a stronger New Zealand dollar helping to increase margins.
Net income rose to NZD19.6m (US$14.4m) or NZD32.83 a share, in the 12 months to 1 August. This compared with NZD12.8m or NZD21.46 a year earlier, the company said in a statement today (27 September).
Sales were up to NZD207.1m, a rise of 4.5% on last year’s NZD198.197m.
“Whilst the strength on the NZ dollar has undoubtedly been an important factor in achieving improved margin, we cannot overlook the impact of better buying,” noted Warren Bell, chairman of directors.
The company said it has made a “positive start” to the new financial year, with group sales for the first seven weeks up 5% on the prior year. But it added it is “far too early in the year to make any prediction of earnings for the first half.”
Bell said: “The retail environment remains challenging, and we do not see any significant improvement in the near term.
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By GlobalData“The momentum achieved over the past year will be extremely difficult to maintain, and the opportunity to further improve sales and margin on the existing business base will be far more challenging.”
