Archive | Hallenstein Glasson

Hallenstein chiefs say company meeting the new competition

Hallenstein Glassons’ chair & chief executive laid out the turnaround of the NZX-listed retail company, how it had dealt with recent international competition and what they saw as the way forward at the company’s annual meeting in Christchurch yesterday.

Chair Warren Bell said: “A significant restructure of the Glassons product team has been completed, and since June we have begun to see an improved performance in both sales & margin. Sales in New Zealand for the new summer season to date have improved 21% over the prior period. Margin is also showing some improvement.

“During the year under review, 3 key stores in Auckland were refurbished in a new concept format. All have shown growth above the chain average and further stores will be upgraded as lease circumstances allow. On 17 November, Glassons reopened in the Christchurch central city, much to the delight of our Christchurch customer base. Glassons is well on track to deliver an improved performance for the 2017 year.”

Mr Bell announced the replacement for chief executive Graeme Popplewell, who retires at the end of this year. His replacement is Mark Goddard, who has 27 years’ international retail experience in a diverse mix of retail formats. Mr Bell said he’d worked in premium, specialty & value markets internationally and in Australia & New Zealand. His most recent position was as president & managing director of Toys ‘R Us Japan. His previous senior roles included positions at Myer, Spotlight Group & Country Road in Australia.

“Mark has a comprehensive understanding of the Australian & New Zealand apparel market and a proven history in driving growth & change. He will take up his duties during the second quarter of 2017.”

Mr Popplewell said the 2016 annual results were disappointing, “but they do not show the work that was put in to strengthen each brand, and in particular Glassons. What I can say is that the work we have put in is now bearing fruit, and results for this new season thus far are much better than last year.”

He said the new Hallensteins & Glassons store formats “are as good as you will find anywhere in the world. And they have to be. 2 months ago we faced competition from both H&M and Zara in New Zealand for the first time, when both brands opened at Sylvia Park, Auckland. To meet that competition we rebuilt our stores, and I can report performance has improved since the new competition has opened.

“Our strategy to have dominant stores in key locations in New Zealand is now complete – Auckland, Wellington, Dunedin, and now at last Christchurch. This calendar year we have invested a significant sum in our store network. It’s critical that we keep up with store reinvention. Our customers are constantly exposed to the best of the best on the internet, and our bricks & mortar stores have to meet what are increasingly high customer expectations.”

Hallensteins has been reborn over the last 4 years as Hallenstein Brothers, the company’s old name. Meanwhile, Mr Popplewell said the company’s internet sales continued to grow, increasing 33% season to date: “Currently the web accounts for almost 8% of group sales and we anticipate that proportion will continue to increase.”

Overall, sales are running 10% ahead of last year: “Gross margin is also up and the season so far is showing very strong profit growth.”

Attribution: Company release.

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Hallenstein Glasson summer sales up 9.8%

Published 25 January 2006


Hallenstein Glasson Holdings Ltd said today sales for the key December-January period continued to show improvement over last year.Total group sales for the period 2 August-23 January rose by 9.8% on the previous summer. Same-store sales rose by 7.3%.


New Zealand rose by 7.4%, 6.9% same-store, and Australia rose by 29.6%, 10.4% same-store.Directors attributed the strong sales performance to a warmer December which was favourable for apparel, and to providing the right product mix.They said margins were retained and profit for the 6 months to 1 February should exceed be up at least 25% on the first half of 2005.


Hallenstein Glasson will release its interim result in mid-March.


If you want to comment on this story, write to the BD Central Discussion forum or send an email to [email protected].


 


Attribution: Company statement, story written by Bob Dey for this website.

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Australian sales boost Hallenstein Glasson picture

Published: 24 January 2005


Hallenstein Glasson Holdings Ltd said today its margins for the season remained on budget and profit for the 6 months to 1 February should be up 10-15%. But the performance seemed to rely on a strong Australian gain.



The company will make its full sales & profit announcement for the half-year in mid-March.


Despite cool weather over the December-early January trading period, Hallenstein Glasson said same-store sales for the period 1 December-23 January were 1.77% ahead of last year. Same-store sales for the season are up 6.52% on a 4.09% New Zealand increase & 33.83% Australian gain.


The company said total group sales for the 6 months to date (2 August-23 January) are up only 0.2%, but sales at HBKGirl, sold in May 2004, boosted the 2004 half’s sales.


Hallenstein Glasson said stocks remained at a controllable level.


If you want to comment on this story, write to the BD Central Discussion forum or send an email to [email protected].

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Hallenstein Glasson boosts profit by 50%

Hallenstein Glasson Holdings Ltd increased its net surplus for the year to 1 August by 49.8% to $17.2 million, on revenue up 2.2% to $181.8 million.


The surplus before unusuals & tax rose 38.3% to $24.2 million. The company made $1 million on the sale of properties. Adjusting for property gains, profit from core retail activities increased 41%


Earnings/share rose 49.2%, from 19.5c to 29.1c/share. The final dividend has been increased from 9.5c to 14c, fully imputed, payable 13 December.The revenue comparison includes revenue from the HBKGirl chain, sold on 2 May. Same store, group sales increased by 5%.Hallenstein Glasson attributed the improvement to:

strong same-store sales growth in both New Zealand & Australia over winter
improved margin on sales
closure of non-contributing operations, and
improved profitability in Australia.

Gross margin on sales was 49% (45% last year). The company said it improved the margin by maintaining a tight control over stock levels (thus minimising markdowns), and through specific buying strategy. Those strategies included buying more product from offshore to take advantage of the strong $NZ, and careful review of pricing & promotional activities. The company withdrew from menswear in Australia, with the closure of 4 Hallensteins stores at the end of last year, and disposed of the 15-store HBKGirl chain.Total shareholders’ funds rose from $43.5 million to $54.2 million after the sale of 2 properties in Nelson & Christchurch, taking advantage of the buoyant commercial property market.


On top of those sales, the directors decided to obtain independent revaluation of the company’s remaining property, resulting in an unrealised $5.2 million gain being credited to the asset revaluation reserve.


The company said the New Zealand & Australian economies had both been favourable for retail, with near-full employment underpinning consumer spending.


“There are, however, some clouds on the horizon, with increased fuel costs & increased interest rates beginning to dampen consumer demand, although the possibility of pre-election spending in New Zealand next year may nullify this to some extent.”


Both the Glassons & Hallensteins chains continue to invest heavily in shop refurbishment.

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Hallenstein Glasson raises bottom line 14.1%

Trading margins improved, but low dollar will put pressure on

Hallenstein Glasson Holdings increased profit by 14.1% to $11.3 million ($9.9 million) in the 12 months to 1 August, on sales up only 2%.

The company said trading margins rose from 40.12% to 42.2%, helped by very good end-of-season clearances in all its three chains — the Hallensteins, Glassons and HBK clothing stores.

End-1999 summer sales rose 3.6%, but winter sales were only marginally ahead, attributed to rising interest rates, higher fuel costs and the falling dollar which had brought a soft economy.

An important factor is that the Hallensteins chain has a high exposure to the rural sector, with 29 of its 56 New Zealand stores outside the four main centres.

Hallenstein Glasson said if the dollar stays down it would place pressure on trading margins and the company would have to review pricing policies.

Meanwhile the company is focused on strengthening its market position and introducing larger-format stores. Its store in the redeveloped Glenfield mall, opening this month, would have some large-format elements but its full entry to bulk retail will be at Botany Downs next April.

New standard-sized stores will open next month on Queen St, Auckland, and a second one in Melbourne.

The company expects to improve operational efficiency by opening a new distribution centre next February.

Basic earnings per share improved from 17.07c to 19.48c. The final dividend of 9.5c is fully imputed.

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Hallenstein Glasson holds firm

Earnings flat, cautious on expansion

Hallenstein Glasson Holdings Ltd maintained its first-half earnings position to 1 February, with a bottom line up $49,000 to $5.96 million on revenue up 1.25% to $84.2 million.

Earnings/share rose from 10.2 to 10.28c. And dividend was held at 9c/share.

Directors said December was strong, and gross trading margin for the summer season closed at 43%, up 1%.

The company’s clothing chains have expanded cautiously. Hallenstein’s “rationalised” three small provincial stores in winter then opened at the redeveloped Glenfield mall in summer and in Queen St, Auckland. It also opened a second Australian store and will open two more in May and September.

The HBK stores have been converted to “all girls” stores, boys’ products moving to Hallenstein’s.

Glasson’s has opened a small distribution centre in Sydney and will open a store a Melbourne store in April. Both Hallenstein’s and Glasson’s are in the new Botany town centre in Auckland.

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