Hallensteins Glasson shares jump 6pc after strong half yr profit

Shares in Hallenstein Glasson jumped 6 per cent today after the apparel retailer reported 20 per cent growth in its half year net profit to February 1.

While the stock price of other retailers, most notably The Warehouse and Briscoe, has fallen in response to disappointing recent profit reports, despite the strong retail sales environoment, Hallenstein shares jumped 16 cents to $2.92 in late afternoon trading.

It reported a net profit after tax for the six months ended February 1 of $6.99 million, up from $5.82 million for the same period the year earlier.

Profit was earned on sales of $90.74 million, little changed from $90.39 million a year earlier. Earnings per share were 11.9 cents, up from 9.9 cents.

The company lifted its fully imputed dividend to 10 cents per share, from nine cents a year earlier and will pay that on April 23.

The company said Christmas sales were late, but the post Christmas period was buoyant, which continued throughout the holiday period.

Hallenstein Glasson said boxing day sales are now becoming as important as pre-Christmas sales.

Although an improved margin on imported goods was being achieved, the retailer said competitive market conditions meant much of these benefits were being passed on to consumers through reduced prices and promotions.

The company said it was selling its HBK Girl chain of stores, effective April 30 but did not give further details of the sale, citing a confidentiality agreement.

The company's Australian operations continued to lose money, posting a loss of $382,000, up from a loss of $12,000 for the same period the year earlier.

The board said it remains committed to developing a chain in Australia despite the challenges.

- NZPA