New Zealand's Hallenstein Glasson full-year sales up on Australian dollar, digital sales strength 

Overview

• New Zealand apparel retailer's full-year sales rose 19.6% yr/yr, driven by Australia and digital

• Net profit after tax climbed 49.9% yr/yr; gross margin improved to 61.7%

• Company declared higher final dividend as balance sheet remains strong

Outlook

• Group says early sales growth will not continue at the same rate through the rest of H1

• Company schedules another NSW store opening in October ahead of peak trading

Result Drivers

• AUSTRALIAN DOLLAR TAILWIND – Group sales benefited from a stronger Australian dollar; constant-currency sales rose 15.6% yr/yr versus 19.6% reported growth

• FULL-PRICE SALES AND FREIGHT – Gross margin rose 240 bps to 61.7%, reflecting stronger full-price sales and supplier and freight-forwarder rate negotiations

• AUSTRALIAN STORE NETWORK – Australian sales rose 29.0% to NZ$324.4 mln, including contributions from new and refurbished stores; the network reached 41 stores

• DIGITAL SALES GROWTH – Online sales grew 26.2% yr/yr and represented 19.0% of Group revenue, up from 18.0%

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories retailers peer group is "buy"

• Wall Street's median 12-month price target for Hallenstein Glasson Holdings Ltd is NZ$12.40, about 6.4% below its September 28 closing price of NZ$13.25

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)