Hallenstein Glasson has posted a slightly lower first half net profit of $9.237m, down 6.6 percent on the same period a year ago.
However, investors applauded the performance with its share price rising 14c to $3.65 in mid-afternoon trading, off a year low of $3.35 last week.
Chairman
Warren Bell said the result was consistent with the January market update which predicted a profit figure of around $9m, compared to $9.89m a year ago.
He noted that the retail sector in both New Zealand and Australia continued to look uncertain.
"Retail conditions will continue to be challenging for the immediate future as high interest rates, increased fuel costs and cost of living increases restrict consumer spending."
Before tax profit fell 6.4 percent to $13.818m and sales revenue eased 2.2 percent to $98.5m versus $100.721m a year earlier.
The company said its balance sheet remained strong with cash and bank balances of $26.45m, compared with $24.87m last year.
It paid $4.581m in tax, down slightly from $4.872m a year ago.
The company recently appointed Australian Shayne Quanchi as its new chief executive, a signal that it would continue to pursue growth opportunities across the Tasman.
Ms Quanchi said the company already had plans to increase the visibility of the Glassons brand in Australia including opening new stores.
In New Zealand a major store refurbishment programme was underway. Seven stores were upgraded during the period and a new store was opened in Albany.
The company also launched online shopping for Hallensteins just before Christmas, and Glassons would have its online shop later this year.
Ms Quanchi said a key to the company's success was its ability to manage product and stock levels. Closing stock was $12.781m compared with $14.522m last year.
The company declared an unchanged interim dividend of 17 cents per share, fully imputed, and said the full year dividend rate was subject to trading results and capital expenditure needs.
- NZPA
