- HLG lost 5,432 trading days in the half-year of FY22
- This resulted in a sales drop by 6.2% and a significant drop in NPAT
Hallenstein Glasson Holdings Limited (NZX:HLG), a mega retail group in New Zealand known for specialized men and women wear reported a dip in total group sales for half-year ended 1 February by 6.2% at NZ$170.6 million over pcp.
According to its trading update provided on the NZX today, the unaudited profit after tax is also projected to drop to a range of NZ$11.1 million to NZ$12.1 million as compared to NZ$19.8 million of the prior year.
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This dip in sales reflecting on profits is due to trade in a number of stores being disrupted by COVID-19 related lockdowns. A total number of 5,432 trading days were lost. HLG reported that all of its stores in Victoria (12) and New South Wales (14) were closed from the start of the financial year.
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In Queensland, a total number of 11 stores remained closed. In New Zealand, all Hallenstein Brothers stores (42) and Glassons stores (36) were closed from 18 August to 7 September. Auckland stores remained closed for extended periods.
The Group reported that where stores were unable to trade due to lockdowns, it entered into negotiations for rent relief support from the landlords. While some negotiations have been completed, others are in process.
HLG, however, reported that online sales continued to play an important part and accounted for 33% of total Group sales in the half-year.
Further, it was reported that under the new COVID settings in both Australia and NZ, all stores are going to remain open, prioritizing the health and safety of the employees and workers. The balance sheet of the group remains strong and stock levels are also in good condition.
The Company expects to announce its full half-year financial results with dividend declaration on 25 March.
Bottom Line: Although Hallenstein Glasson Holdings reflected a dip in its half-year sales for FY22, the group has a strong balance sheet and remains focused on improving its functionality and improving customer experience.