Casual in, tailored out: Hallenstein Glassons sales leap but pressures from freight, greenback remain

Hallenstein Glassons said more people were shopping in store, so online sales were down on the days of Delta and Omicron restrictions. Photo / NZME

Casual is in and tailored is out, if clothing retailer Hallenstein Glassons’ latest results are anything to go by.

The group increased sales by more than 30 per cent on the same time last year.

In half-year results released today, Hallenstein Glasson Holdings (HGH) sales for the six months to February 1 were $223.29 million.

That figure was 30.9 per cent up on the prior corresponding period.

Net profit after tax was $20.83 million (unaudited), an increase of 74.8 per cent over the corresponding period (PCP) last year.

Hallenstein Brothers’ sales were $59.79 million for the six-month period, up 32 per cent on a year before.

The company said Hallensteins successfully increased casual product offering, which helped offset decline in demand for tailored products.

“This has included moving to a more smart-casual product range in fitting with current trends,” HGH said today.

Group digital sales were down to 18.1 per cent of total sales, plunging from 32.8 per cent.

But that may not be a bad thing - because the company said customers were eager to get back into physical stores after Covid lockdowns.

Despite that, HGH said the Glassons app was successful with more than a million downloads.

HGH said a new Glassons app was successful, with more than a million downloads. Photo / Jason Oxenham

Gross margin on sales was 56.5 per cent compared with 57.9 per cent in the PCP.

But the Kiwi-US Dollar exchange rate and higher than normal freight costs put pressure on margins.

“Freight costs have been coming down in the new season but are still not at pre-Covid levels,” the company said in an NZX announcement today.

“Inventory levels have increased in order to alleviate disruption from freight delays but continued to be well managed to preserve liquidity.”

This time last year, the Omicron strain was running rampant and a short time earlier much of the country, including Auckland’s lucrative retail centres, were locked down during the Delta pandemic.

Glassons sales in Australia were $102.89 million for the six-month period, up 43.1 per cent on the PCP.

During the season a new store was opened in Macarthur Square, Sydney.

Glassons sales in New Zealand were $60.62 million, up 13.4 per cent against the PCP.

During the season, the Botany store in Auckland was refurbished, with more refurbishments planned in the next six months.

Directors declared an interim dividend of 24c per share (partially imputed) up from 18c last year.

HGH said some challenges were in store - especially with cost of living and inflationary pressures impacting on consumers.