Hallenstein Glassons has reported a bumper half year result, with New Zealand's net profit up 43%. Photo / Alex Burton
Hallenstein Glassons has reported a strong half-year result as revenue, profit and margins strengthened across all three of its segments, with profit surging over the period.
In the six months to February 1, 2026, Hallenstein Glassons reported total group sales of $275.2 million, up 14.6% compared to $240m in the prior corresponding period.
The group’s operating profit, or earnings before interest and tax, lifted from $31m to $41.1m, while gross margin for the group increased from 58.5% to 60.9%.
The group said this lift was despite a “continued challenging foreign exchange rate for inventory purchases, which was lower than the prior corresponding period”.
Overall, the group reported an unaudited net profit of $28m, up 32.1% on the prior corresponding period.
Glassons Australia continued its run as the group’s strongest performer, with sales up 22.4% in the half from $123.9m to $151.8m.
This is inclusive of sales from new and refurbished stores, including a new store opened in Burwood, New South Wales, taking the total store count in Australia to 41.
The Australian arm reported a net profit before tax of $20m, an increase of 17.9% on the prior year, with a net profit after tax of $13.8m, up 16.5% from $11.8m in the prior corresponding period.
Hallenstein Glassons chairman Warren Bell said the group is continuing to explore new store opportunities in the Australian market, when the right opportunities arise.
“Work is continuing on a new purpose-built larger warehouse with improved automation which will ensure the business is prepared for future growth,” Bell said.
The new Sydney-based warehouse is on track to be ready towards the end of the second half of the 2026 financial year.
As for Glassons New Zealand, sales lifted by 8.2% from $63.2m to $69m.
During the half the Hamilton central store was refurbished and reopened in late August.
The New Zealand business reported a net profit before tax of $13.3m, up 43.8% on the prior corresponding period, with a net profit after tax of $9.5m, up 43.5% from $6.6m.
Looking to Hallensteins, sales for the brand across Australia and New Zealand lifted by 4.5% from $58.8m to $61.5m.
During the half, the business refurbished and reopened its Hamilton central store, with the Lynn Mall store expanded and refurbished in December 2025.
In Australia, a permanent site in Robina was established following a successful pop-up, while another pop-up in Paramatta closed post-season end, with decisions to be made about what store opportunities the group wants to pursue.
Overall, Hallensteins reported a net profit before tax of $6.2m, up 76.2% compared to the prior corresponding period, with a net profit after tax of $4.4m, up 76.5% from $2.5m.
Digital sales have increased to 18.1% of total group sales, up from 17.7% in the same period last year.
For the first seven weeks of the second half, Hallenstein Glassons reported group sales up 20.1% on the same period last year, with margin tracking consistent to the first half.
Hallenstein Glassons’ chairman Warren Bell said the performance has seen improvements across all brands compared to the same prior period.
“While the start to the second half has been pleasing, the results to date should not be viewed as indicative of the rest of the season as we enter the more significant sale periods including Easter and School Holidays.
“It will be much more difficult to replicate the current growth in the months ahead,” Bell said.
Bell also acknowledged the conflict in Iran, noting the unpredictable impacts it can have on “nearly all areas of our business”.
“The likely increase to cost of living in the markets in which we operate and interest rate increases can have a strong influence on consumers discretionary spending patterns which can directly impact sales.
“Impacts are also likely on foreign exchange, logistics and associated fuel and transportation costs, and other increased costs of doing business, all of which could directly impact our bottom-line profits. The group will continue to monitor developments and remain agile in our response.”
Hallenstein Glassons’ board declared an interim dividend of 29c per share, partially imputed at 32.7%, to be paid on April 24, 2026.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.