Announcement
HALFYR: HLG: HGH Ltd Results for the 6 months ended 1 February 2021
09:24am
HLG
26/03/2021 09:24
HALFYR
PRICE SENSITIVE
REL: 0924 HRS Hallenstein Glasson Holdings Limited
HALFYR: HLG: HGH Ltd Results for the 6 months ended 1 February 2021
26 March 2021
HALLENSTEIN GLASSON HOLDINGS LIMITED
UNAUDITED RESULTS FOR 6 MONTHS ENDED 1 FEBRUARY 2021
The Company advises that Group sales for the six months to 1 February 2021
were $181.98 million, an increase of 13.6% over the corresponding period last
year ($160.27 million). Net profit after tax was $19.84 million, an increase
of 28.6% over the corresponding period last year ($15.44 million). The result
is in line with the guidance announced to the NZX on 17 February 2021.
Gross margin on sales was 56.5% compared with 58.3% in the prior
corresponding period, this was mainly due to increased freight costs
resulting from shipping delays over the key trading period where stock was
required to be airfreighted to manage availability. General expenses across
the business were well controlled.
Segment Results
Glassons
Sales in Australia were $68.43 million for the six month period, which were
up 26.9% against the prior corresponding period. During the season a new
pop-up store was opened in Birkenhead, Sydney. There are currently permanent
sites being reviewed for potential openings in Australia to further expand
the business.
Sales in New Zealand were $61.84 million, which was up 14.5% against the same
period last year. There is continued focus on technology and the
effectiveness of being omni channel with an increase in investment to support
the digital strategy.
There has been a strong emphasis to make product more sustainable with a
number of new initiatives launched over the period. Both Glassons businesses
have continued to show strong growth in what is a challenging and
ever-changing environment.
Hallenstein Brothers
Sales were $51.70 million for the six month period (including Australia),
with sales declining -1.2% against the same period last year. Demand for the
tailored product diminished with the impact of COVID-19 with more people
working from home, and less certainty around events. Work continued
throughout the season on improving the product offering and repositioning the
brand.
E-Commerce
Digital sales have increased to 23.8% of total Group sales for the six month
period. The focus is on digital marketing across the Group to drive
engagement across all channels. During the period Glassons launched an
omni-channel Glassons App which has been very successful with a large uptake
from customers.
Dividend
The Directors have declared an interim dividend of 23 cents per share (fully
imputed) (last year 15 cents per share) to be paid on 16 April 2021. The
balance sheet continues to be strong, inventories well controlled and the
current trading patterns have allowed the Company to increase the dividend
payment.
Future Outlook
Although the trading environment in both New Zealand and Australia remains
challenging, and with the uncertainty of COVID-19 ever present, it is
encouraging that Group sales for the first 7 weeks of the Winter season are
+17.8% ahead of the same period last year. However, it must be considered
that it was this time last year that the COVID-19 impact was beginning to be
felt in both New Zealand and Australia.
During the period Auckland moved to Level 3 on the 15th February to 17th
February 2021 and 28th February to 6 March 2021 where thirteen Hallenstein
Brothers stores and twelve Glassons stores were closed.
Following the appointment of Stuart Duncan as the new Group CEO from 1 April
2021, the business will continue to focus on building digital engagement with
our customers, cost control and improving our market share in the New Zealand
and Australian fashion apparel sector in which we operate.
Mary Devine
Group Managing Director
End CA:00369763 For:HLG Type:HALFYR Time:2021-03-26 09:24:42
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