Craigs Investment Partners broker Peter McIntyre said the shares rose 5% in value after the market announcement as investors took cheer from the result, particularly those who had underestimated the retail sector.
''This is a tentative sign things may be about to improve. Hallensteins is not taking drastic action seen by other retailers. It is fixing what it can fix immediately, and doing a good job.''
The company reported sales of $110.9 million for the six months ended February 1, up 4.2% on the previous corresponding period.
The operating profit rose 40.3% to $11.7 million from $8.3million in the pcp and the important gross margin rose 2.5% to 60.4%.
Reported profit rose nearly 40% to $8.6 million from $6.2million and the dividend increased nearly 21% to 14.5c per share.
Mr McIntyre said Hallenstein Glasson was always regarded as one of the smart retail operators until it had a couple of blips in its results in the past two years.
Before then, the company was known for high dividend payouts, high profits and margins.
''This is the first step in regaining the confidence back to its brands and its retail stores.''
Mr McIntyre said the margin was a key part of the result and the group was doing what other companies could just dream about these days - increasing the margin on its sales.
Individual brand results showed the group was using its buying strength well.
Group chief executive Graeme Popplewell said he was pleased with the progress Hallenstein Glasson had made in regaining market share.
The critical trading period of December and January was particularly robust and the momentum had carried through to the first few weeks of the second half of the year.
Reviewing individual performances, Mr Popplewell said after a difficult period last year, Hallensteins had regained its market share.
Sales increased 5% and a net profit after tax rose 52%, driven through a better product offering.
Hallensteins' innovative market campaigns had resonated with the consumer and the brand was well placed to capitalise on its success in the coming months with the new winter season opening strongly against last year.
Glassons, in New Zealand, had struggled in the first four months of the summer season but from December had shown a consistent improvement. For the summer season, both sales and gross margins were flat on the pcp.
The turnaround since December had continued into the new season.
In Australia, Glassons made good progress, with same store sales up 10% and total sales up 16%.
The Storm division lifted net profit after tax by 20% on flat sales, Mr Popplewell said. Improved margins through tighter buying was a key feature of the season.
The first seven weeks of the winter season had been encouraging, with group sales up 14% on last year with all chains performing well, he said.
''The key winter trading months are yet to come so it is premature to project season results at this stage.''
