Hallenstein Glasson shares were hit hard yesterday after the company announced a profit downgrade.
Shortly after the market opened, Hallenstein Glasson shares were down 21c, or 5.1%, to $3.89, the lowest level in more than four months.
Shares in Restaurant Brands dropped to $2.40 early, their lowest level in about six months, before making up some lost ground to be down 2c to $2.42, having also fallen 7c on Tuesday.
Hallenstein Glasson chief executive Stephen Timms said the unaudited net profit after tax for the six months ended February 1 was projected to be in the range of $7 million to $7.4 million, down 13% on the previous corresponding period.
Group sales for the period were forecast at $100.6 million, down 1.6%.
"While Hallensteins and Storm had performed above the prior year during the key trading months of December and January to date, Glassons had experienced difficult trading in both New Zealand and Australia.
"Intense competition for market share had been a feature of the women's fashion market on both sides of the Tasman."
Hallensteins sales were up 3.5% in the six months (same stores up 5%).
Glassons NZ sales were down 5.4% (same stores down 7.1%).
Glassons Australia sales were down 9% (same stores down 9%).
Storm sales were up 28.5% (same stores up 5.2%).
Mr Timms said despite a reduced earnings figure, the company anticipated that the strong balance sheet and liquidity position would enable it to maintain the dividend at a rate similar to last year.
Forsyth Barr broker Suzanne Kinnaird was expecting a "fairly flat full-year profit" this year but with the first half down 13% to 18%, that now looked unlikely.
"Even assuming things improve a bit in the second half, we are probably looking at a profit fall of 10% or so for the year."
Retail statistics out last week showed core retail sales were down 2% in November after a 1.6% fall in October, following the rise in GST.
In her round-up of listed retailers, Ms Kinnaird continued to have accumulate recommendations on Pumpkin Patch and Briscoe Group but had downgraded Michael Hill International to hold with the share price having risen close to Forsyth Barr's valuation.
In late December, interests associated with the Hill family made a partial offer for 5% of MHI to take their holding above 50%.
Restaurant Brands, which operates Pizza Hut, KFC and Starbucks, appeared to be fully priced, despite a spectacular recent performance.
The Warehouse Group had the highest price-earnings ratio in the sector but had an uninspiring growth outlook and Hallenstein Glasson had reached Forsyth Barr's valuation.
Ms Kinnaird had a hold on those three stocks.
