Sales hold up for Hallenstein Glassons

Fashion retailer Hallenstein Glassons has enjoyed an increase in total sales of 7.9 per cent in the first four months of its latest financial year.

Chairman Warren Bell told shareholders at the annual meeting in Christchurch today the latest sales were from August until the end of November.

The biggest percentage increase of 31 per cent was recorded by the company's 20 Australian Glassons stores but they represented a much smaller asset base, he said. (Hallenstein Glassons has 77 stores in New Zealand).

Commenting on the financial performance of the company for the year ending June 2005, Mr Bell said it had been enhanced by withdrawing from the HBK chain and closing the Hallenstein menswear stores in Australia, which had failed to perform.

Buoyant trading in the year ending June had resulted in a record after tax surplus of $19.3 million (up 12.4 per cent on the previous year) on turnover of $185 million, and a total dividend payment to shareholders of 30c a share (92 per cent of the after tax profit).

Meanwhile, the company is exploring new sites and market segments for stores and plans to appoint an Australian director to reflect the company's focus over the Tasman.

Mr Bell said that most Australian chains had about 100 stores and Hallenstein Glassons saw huge potential beyond its 10 stores in Melbourne and 10 in Sydney.

Fashions that sold well in New Zealand generally also sold well in Australia. But economic fundamentals in the near term looked were more positive in Australia.

Mr Bell told shareholders that the Australian operations were now turning a small profit.

In New Zealand the company prided itself on inventory control, flexibility and constant upgrading of stock and premises, evidenced in its stores in Queen St, Auckland and Cashel St in Christchurch.

The business of the annual meeting included reappointment of directors Brian Boxley, Mike Donovan, and Graeme Popplewell.

Shareholders also ratified without discussion a collective increase in directors' fees of $30,000 to a total $205,000.

Fashion director Dianne Humphries gave a small insight into the latest fashions that Hallenstein Glassons will be marketed in coming months.

She said the trend overseas was towards Victoriana, which Hallenstein Glassons is calling "Romantica" and features a feminine look with plenty of lace and mood colours. Some of the latest fashions have been trialled in Hallenstein Glassons stores over the past fortnight.

Shares in Hallenstein Glassons were up 5c at $4.50 just before midday, having ranged between $3.52 and $5.10 over the past year.

- NZPA