Clothing retailer Hallenstein Glasson Holdings posted a 21 per cent drop in first-half profit and warned that a warm autumn is having an impact on sales in both Australia and New Zealand.
Net profit to $6.8 million in the six months ended Feburary 1, from $8.6 million a year earlier, the company said in a statement.
Sales rose by 1.4 per cent to $112.4 million. The gross margins on sales fell to 56.79 percent from to 60.42 per cent. Total expenses fell 1.4 per cent as the retailer took steps to preserve margin and the company said it's committed to what it terms "future cost refinement".
It operates the Hallenstein menswear brand and the Glassons and Storm womenswear brands. All the brands saw sales growth apart from Glassons in New Zealand, with chief executive Graeme Popplewell telling investors that there has been a "significant focus on improving the fashion offer" which should see better future performance.
Despite Hallenstein menswear raising sales by 6 per cent, the company says the highly competitive market meant it couldn't pass on the impact of the lower kiwi dollar. Sales for the first seven weeks of the season are on a par with last year. However online sales are up 38 per cent and Hallenstein Glasson says it will continue to focus and invest in this area.
The clothing retailer's share price rose 0.6 percent today to $3.14 and has fallen 6.3 per cent since the start of the year.