Hallenstein Glasson full-year profits dive 22%

By

Benjamin Fitzgerald

Published
Aug 18, 2016

Hallenstein Glasson, which operates the Hallenstein menswear brand and the Glassons and Storm womenswear brands, reported its net profit after tax is projected at approximately $13.5 million (US$9.4 million), a 22% decrease from the previous year of $17.386 million.

The New Zealand-based company reported sales for the 12 months ending August 1 of $223.48 million, inching above the prior year of $221.52 million

The apparel group said while top line sales have been maintained in a very challenging environment for apparel, there were three main factors that caused profit erosion. A lower exchange rate, which had a negative impact on gross margin and fell three basis points from 59.3 per cent in the prior year to 56.5 per cent in the current year.

Secondly, record mild temperatures on both sides of the Tasman during early winter resulted in key winter categories failing to match last year sales.

Meanwhile, difficulties in securing effective management for Glassons business saw "a lack of continuity fashionability" which impacted sales and margin. That key issue was addressed following the appointment of Di Humphries in April 2016 as head of the brand's business.