The company reported net profit up 55.9% to $8.5 million for the six months ended February 1, due to improved sales, increased margin and tight cost control.
Revenue for the period was up 6.9% on the previous corresponding period to $102.3 million, while expenses rose 2.5% to $44.7 million.
An interim dividend of 14c per share is to be paid, compared with 10cps last year, with the company saying the dividend would continue to reflect earnings and capital spending requirements.
After a year of curtailed capital expenditure on store development, several projects were now in progress, the company said.
During March, Glassons launched a new look and brand update at Palmerston North and at Riccarton Mall.
Hallensteins would relocate to a larger site in Cuba Mall, Wellington, at the end of the month and had relocated to a new site in Palmerston North.
Craigs Investment Partners broker Chris Timms said the company showed confidence in spending capital.
"They wouldn't do that if they didn't think better times were on the horizon," Mr Timms said.
Much would depend on the winter season sales for the retailer.
Most of the good news for Hallenstein Glassons had been released earlier in the year through a trading update. In late January, the shares rose from $3.25 to $3.70 on the back of that good news.
There was little market reaction to the release yesterday, Mr Timms said.
Hallenstein Glassons chairman Warren Bell said that for the first seven weeks of the new half year, sales had been down 2% on the previous year, although margins were ahead of last year.
"Sales are against strong discounting last year, and we caution against reading too much into these figures. It is too early in the season to make any prediction on the winter season results."
The retail environment was reasonably stable and consumer confidence was at a stronger level than last year.
Other retailers have used the phrase "cautiously optimistic" and in the absence of any major negative economic news Hallenstein Glassons concurred with that sentiment, he said.
The improved profit was a solid step towards regaining profit levels achieved before the impact of the recession of 2008 and 2009.
The effect of improved sales, increased margin, and tight control on costs had all combined to lift profits towards the levels previously achieved, he said.
"Strong trading over the Christmas period and early January cemented what had been a steady improvement during the period," Mr Bell said.
