Shares in clothing retailer Hallenstein Glasson were down 7.1 per cent in early trading today after the company advised it was expecting a 30 per cent fall in annual net profit.
Hallenstein Glasson today said it was expecting profit after tax for the full year to August 1
of about $15 million, from $21.3 million last year.
Shortly after the stock market opened, shares in the company were down 19c to $2.50.
In today's announcement, the company said sales for the winter season continued to be under pressure from a deteriorating retail market in this country and Australia, with group sales down 6 per cent for the season to date.
Chief executive Shayne Quanchi said the change in the retailing climate was the result of consumer reaction to increased fuel and food costs and higher mortgage interest rates.
"The current environment is the most challenging experienced for a number of years. There is fierce competition for consumers' wallets," he said.
"As a result, margins are being squeezed and every effort is being made to control stock levels.
"Fortunately our business model is based on high stock-turn, so we expect to end the season with our stock levels in good shape."
The company's full year result is due for release on September 24.
Hallenstein Glasson shares closed at $2.69 yesterday, down from $4.80 a year ago but up from a year low of $2.42 at the start of July.
- NZPA
