Listed clothing retailer Hallenstein Glasson Holdings yesterday reported improved sales for the 12 months ended August 1, but those increased sales appear to have come at the cost of margins.
Chief executive Roy Dillon said the unaudited sales for the 12 months were $198.12 million, up 2.3% over the previous corresponding period.
Sales for the six months to August 1 were up 7.6% on the previous corresponding period.
"While sales for the winter season had shown a gradual return of consumer confidence in both Australia and New Zealand, sales had been achieved through aggressive pricing strategy which had been at the expense of margin."
An early start to winter had assisted sales, May in particular producing strong sales across the board, he said.
Sales in Australia had been helped by the cash payments the Australian Government had injected into the economy.
"Overall, our inventories remain within budget and we will continue to seek to improve market share in what we see as a subdued retail environment in the coming months."
Profit after tax for the full year was projected in the range of $12.2 million to $12.4 million, down about 23% on the previous year.
However, net profit for the six months ended August 1 was projected to be similar to the corresponding period last year at about $6.6 million.
A full profit announcement would be released on September 24, Mr Dillon said.
