Clothing retailer Hallenstein Glasson says sales remain lower than last year despite an improvement in Australia, but is unable to give a first-half profit forecast.
Last month the company said sales were down 2 per cent for the first four months of the year, but yesterday said itwas too early to predict the success of the Christmas and New Year sales.
To mitigate rising rental and freight costs, and increased competition from Australian retailers, the company was refining its distribution and logistics processes, sourcing new product, increasing store size in some areas and introducing new product categories.
It was also planning to open a China-based office, chairman Warren Bell said at yesterday's annual meeting.
"Strategies aimed at improving gross margin on sales have continued to deliver results, with margin improving from 50.2 per cent to 52.8 per cent."
Gross profit margin four years ago was 45 per cent.
Bell said that Hallenstein Glasson was interested in potential acquisitions, although Australian equity funds were paying record prices for New Zealand businesses and repricing the market.
"Our balance sheet provides considerable room for organic growth and expansion, and your board has an open mind towards acquiring other businesses in the apparel sector."
Hallenstein Glasson shares closed down 7c at $5.13 yesterday.
