Quarterly profit for high street retailer Hallensteins
Glassons is up 7% as it heads into the crucial holiday sales
Hallensteins chairman Warren Bell told shareholders at the
company's annual meeting yesterday the year-to-August group
sales were up almost 5% at $215.5 million, with profit after
tax up almost 15% to $21 million.
Cash reserves improved from $23 million a year ago to $26
million, underpinning a dividend policy of paying out 90%-95%
of after-tax profits in dividends - Hallensteins increasing
its full-year dividend from 31c a year ago to 33.5c, Mr Bell
As with The Warehouse, Briscoes and Kathmandu, Hallensteins
is relying on sales over the Christmas period to boost
revenue and clear stock inventories, albeit at a cost to
profit margins during the highly competitive season of sales.
Chief executive Graeme Popplewell outlined three core growth
strategies, including brand strengthening in key existing
stores, and also developing the store network, but in
selected high-profile locations.
''With the advent of the internet and levelling of the retail
playing field, we will continue to see good locations get
stronger, and average locations get weaker,'' Mr Popplewell
With the third strategy, e-commerce growth, where 18 months
ago Hallensteins had zero online sales, it expects 5% of this
financial year's business to come from online and over the
''next few years'' to grow to up 20% of retail turnover.
''We have invested in infrastructure to support this growth
and to ensure we capitalise on this fundamental shift in
consumer habit,'' Mr Popplewell said.