Clothing retailer Hallenstein Glasson has lifted its annual profit by almost half, with its Glassons chain in Australia doing much of the heavy lifting while many New Zealand retailers are still struggling to get shoppers through the door.
In its full-year result released to the NZX on Tuesday 29 September, the company reported net profit after tax of $59.2 million for the 12 months to 1 August 2026, up 49.9 per cent on the $39.5 million it made a year earlier. Group sales rose 19.6 per cent to $563.0 million, from $470.7 million. Profit before tax climbed 43.8 per cent to $83.9 million.
Part of the boost came from the exchange rate. The directors said a stronger Australian dollar had flattered the numbers, and that on a constant currency basis group sales were up 15.6 per cent. That is still a strong year for a mid-market fashion business at a time when household budgets on both sides of the Tasman are stretched.
Margins also moved in the right direction. Gross margin rose 240 basis points to 61.7 per cent, up from 59.3 per cent, even though the company said the exchange rate for buying stock offshore remained challenging. According to the company’s results statement, signed by chairman Warren Bell, “The improved margin reflects stronger sales at full price, and working closely with suppliers and freight forwarders to secure best possible rates.” Selling more at full price, rather than clearing racks through markdowns, is usually the clearest sign a fashion retailer has its ranges right.
Glassons Australia is now by far the largest part of the business. Sales across the Tasman rose 29 per cent to $324.4 million, or 21.4 per cent in constant currency terms, and profit before tax from the Australian stores rose 27 per cent to $43.5 million. A new store opened in Burwood in New South Wales during the year, taking the network to 41 stores, while the Parramatta store moved to a bigger site and stores at Castle Towers and Highpoint were refurbished or expanded. Since balance date another store has opened at Miranda in Sydney, and a further New South Wales store is due to open in October ahead of the Christmas rush. A new purpose-built warehouse in Sydney, with more automation and extra capacity, started operating in the first week of the new financial year.
At home, Glassons New Zealand grew sales 11.5 per cent to $124.8 million, and profit before tax jumped 51.9 per cent to $29.1 million. The company refurbished its Hamilton Central store and expanded the Porirua store, and its Frankton store in Queenstown, which opened in July 2025, has now completed its first full year. The New Plymouth store reopened in September after a refit.
The menswear brand Hallensteins grew more slowly, with sales up 6.1 per cent to $113.8 million including its Australian stores. But its profit before tax more than doubled, rising 129.5 per cent to $10.9 million from $4.8 million. “The business has worked hard to improve profitability over the last 12 months, and the result achieved demonstrates the effort,” the company said. Hallensteins now has six stores in Australia after opening at Indooroopilly in Queensland after balance date, and relocated its Harbour Town store on the Gold Coast to a much larger site in March.
Online shopping continues to grow faster than store sales. Digital sales made up 19 per cent of group revenue, up from 18 per cent the year before, and online sales grew 26.2 per cent overall.
Shareholders will share in the gains. The board declared a final dividend of 40 cents per share, up from 30.5 cents last year, to be paid on 9 December. Together with the 29 cent interim dividend paid in April, that takes the full-year payout to 69 cents a share. The company said the higher dividend reflected a balance sheet that remains strong and inventory levels that are well controlled. RNZ reported that operating cash flow rose 38 per cent to $122.2 million and that the group ended the year with $88.2 million in cash and no interest-bearing debt.
The result stands out against a patchy local retail scene. Electronic card spending on apparel fell 2 per cent in August compared with July, interest.co.nz reported, as core retail spending slipped 1 per cent overall. Last week outdoor clothing group KMD Brands, owner of Kathmandu, reported a statutory loss of $414 million after writing down the value of its brands, even though its sales grew. Hallenstein Glasson’s advantages have been a large and growing Australian business and a balance sheet with no bank debt.
The new financial year has started well. For the first eight weeks, group sales were 18.4 per cent ahead of the same period last year on a constant currency basis, with both brands ahead and new and refurbished stores contributing. But the company warned investors not to extrapolate. “The rate of sales growth achieved in the opening weeks is not expected to continue at the same level through the remainder of the first half,” it said, noting that the eight weeks come before the all-important Black Friday and Christmas trading period.
It also flagged the risks ahead. “The Group continues to operate against an uncertain economic and geopolitical backdrop,” the statement said, pointing to consumer spending, exchange rates, freight and logistics costs and other operating costs as factors that could affect trading and profit over the rest of the year. A further trading update is due at the annual meeting in December.
For New Zealand shoppers, the result is a reminder that a homegrown retailer can still expand successfully into the much bigger Australian market, where Glassons now sells more than two and a half times as much as it does in New Zealand. Whether that momentum holds through a cautious Christmas will be the next test.
Do you shop at Glassons or Hallensteins, and have you noticed more full-price buying lately? Share your thoughts in the comments below.
This article was written by AI, briefed to report the facts, hopefully without some of the bias people bring to the job 🙂
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