The listed company reported an operating profit of $31.9million for the period, up 17.5% on the $27.2million reported in the previous corresponding period.
Earnings before interest and tax were up 22.5% to $23.7million from $19.4million and the reported profit was up 21.8% to $17.4million from $14.3million.
The total dividend was increased 8.8% to 31 cents per share.
Forsyth Barr broker Suzanne Kinnaird said the earnings before interest and tax were marginally below expectations.
A strong result from Hallensteins and Storm outweighed weakness in Glassons NZ.
Operating cash flow of $31million was ahead of the previous year and the company ended the year with a stronger net cash position.
No 2016 financial year guidance had been provided, she said.
''Sales for the first eight weeks are up 4%. However, HLG highlighted sales growth had been achieved at the expense of margin, due to intense competition.''
The company also said the weaker dollar against the United States currency was starting to exert margin pressure and the ability to raise prices to compensate was limited.
The key trading period for HLG was December and it was difficult to extrapolate initial trading, Ms Kinnaird said.
The material adverse currency movement was likely to put pressure on margins, albeit at a lag given hedging.
''We see down side risk to our medium term earnings forecasts, with the kiwi having depreciated a further 10% against the US dollar since our last report.''
HLG had two strong, mature brands in New Zealand and was a cost lean business with a strong balance sheet, she said.
A high payout ratio, solid free cash flow and a net cash position enabled the company to maintain its high dividend yield.
Trading conditions were tough for apparel retailers and the structural shift to online presented earnings risk for the company, Ms Kinnaird said.
Key points
Glassons NZ: Ebit of $8.2m down 17% on previous year, underpinned by weak sales growth and significant margin contraction. The chain disrupted by executive changes; new management finally in place.
Hallensteins: Ebit growth of 31% showed impressive turnaround, underpinned by sales growth and margin expansion.
Storm: Small part of group earnings. Ebit of $1.3m materially ahead of previous year, largely driven by lift in margins.
Glassons Australia: Ebit of $200,000 compared with loss of $2.1m last year. Same store sales up 12.6% and strong improvement in ebit margins.
