| FLLYR: HLG: HLG Full Year Result for the period ending 1 August 2018 |
10:03a.m. |
|
| HLG |
| 28/09/2018 10:03 |
| FLLYR |
| PRICE SENSITIVE |
| REL: 1003 HRS Hallenstein Glasson Holdings Limited |
| |
| FLLYR: HLG: HLG Full Year Result for the period ending 1 August 2018 |
| |
| HALLENSTEIN GLASSON HOLDINGS LIMITED |
| |
| RESULTS FOR FULL YEAR ENDED 1 AUGUST 2018 |
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| The company advises that Group sales for the 12 months to 1 August 2018 were |
| $277.64 million, an increase of 16.2% over the corresponding period last year |
| ($239.00 million). The audited net profit after tax was $27.36 million, an |
| increase of 58.4% over the corresponding period last year ($17.27 million). |
| |
| The 2017/18 financial year has continued to build on the success of the |
| previous year. The buying strategy, investment in digital and the |
| improvements in customer service and experience that were implemented in 2017 |
| have supported sales and margin growth. Combined with tighter cost control, |
| this has in turn led to significant net profit growth. Whilst the trading |
| environments remain tough in both New Zealand and Australia, our brands have |
| responded and adapted to these conditions to deliver the strong result. |
| |
| Segment Results |
| |
| Glassons New Zealand |
| Sales for the year were $96.73 million, an increase of 8.1% on the prior |
| year. Key to the performance over the last twelve months has been our focus |
| on fashion, our speed to market and our customer service. Significant |
| investment was made in digital throughout the year, improving customer |
| engagement with our website, social media platforms as well as in our stores. |
| |
| During the year, we renovated the Queenstown and Queensgate stores to our new |
| concept design, and we closed one underperforming store in Henderson. |
| Planned investment is proceeding in New Zealand for the current financial |
| year. We have already refurbished our Dunedin Store and have a number of |
| additional store upgrades scheduled. |
| |
| Glassons Australia |
| Sales for the year were $78.42 million, an increase of 56.7% on the prior |
| year. Again, our focus on fashion, speed to market, customer service and our |
| investment in digital has driven sales in what remains an especially |
| challenging retail market. |
| During the year two new stores, Melbourne Central and Charlestown were |
| opened, and a further two stores, Warringah and Chermside, were refurbished |
| into our new concept. |
| Planned investment is proceeding in Australia. We have refurbished three |
| stores in the current season in Bondi, Highpoint and Parramatta with |
| additional refurbishments scheduled in the short term. There are also |
| additional store openings planned in The Glen and Liverpool for later this |
| year with additional stores under consideration. |
| |
| Hallenstein Brothers |
| Sales for the year were $96.89 million (including Australia), an increase of |
| 6.4% on the prior year. Hallenstein Brothers continues to build on its |
| established market leading position in New Zealand. The three stores in |
| Australia have performed steadily and we remain positive about the |
| opportunity that exists for the brand in that market. Investment has |
| continued in digital to help drive sales and improve customer engagement. |
| During the year, the Queenstown store was refurbished to new concept and two |
| small underperforming non-strategic stores were closed. |
| Further investment in stores is planned for the current financial year as |
| well as an extension to the Distribution Centre to accommodate the growth in |
| online sales. |
| |
| Storm |
| The Storm business assets were sold on 30th April 2018 to Blackstar Holdings |
| Limited. The Storm retail stores are no longer part of the Hallenstein |
| Glasson Group. |
| |
| E-Commerce |
| As a result of the company's ongoing investment in digital, online sales |
| growth has improved at a significantly greater rate than bricks and mortar |
| stores. During the last financial year, online sales growth was 63.6% and now |
| represents 12.8% of Group turnover. We will continue to invest in technology |
| and resources to build momentum in this strategic area of the business into |
| the future. |
| |
| Dividend |
| The Directors have declared a final dividend of 24 cents per share (fully |
| imputed) to be paid on 17th December 2018. Together with the interim dividend |
| of 20 cents per share that was paid on 13th April 2018, the full year |
| dividend is 44 cents per share. This increase in dividend payment comes as a |
| result of the company's strong balance sheet, well controlled inventories and |
| the current trading patterns. |
| |
| Future Outlook |
| The first eight weeks of the new financial year have seen sales grow +7.2% on |
| the prior year. The Group continues to improve and build on its buying |
| strategies, speed to market, and customer service. Strategic investment |
| continues in digital, as well as in new and refurbished stores. Customers |
| have reacted positively to new season stock and web sales continue to grow. |
| The Group is focused on delivering a strong performance going into Christmas |
| trading. |
| An update will be provided at the annual meeting of shareholders in December |
| 2018. |
| |
| Mark Goddard |
| Group CEO |
| +64 21 194 7035 |
| End CA:00324591 For:HLG Type:FLLYR Time:2018-09-28 10:03:34 |
