Hallenstein Gains Most in Six Weeks as Profit Decline Slows
Hallenstein Glasson Holdings Ltd. (HLG) rose the most in more than six weeks in Wellington trading after the New Zealand clothing retailer said full-year earnings fell by less than it indicated in late May.
Net income fell 6.6 percent to NZ$18.3 million ($14 million) in the year ended Aug. 1, the Auckland-based company said in a statement today. That included a first-half profit decline of 17 percent, which Hallenstein in May said was a trend unlikely to be improved on in the full year.
The stock rose 27 cents, or 8.5 percent, to NZ$3.45 at the 5 p.m. market close, the biggest gain since Aug. 10. Earlier it rose as much as 10 percent.
A snap of cold weather in July boosted sales of winter clothing, reversing sales weakness caused by what had until then been unusually warm winter temperatures, Hallenstein said. Seven stores were also closed in Christchurch after an earthquake in February shuttered much of the central business district.
Group sales for the seven weeks since Aug. 1 are ahead of the year-earlier period, representing a “solid start to the year,” Chief Executive Officer Graeme Popplewell said in the statement.
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