Hallenstein Glasson shares dropped after the retailer said first-half profit fell by as much as 43.9% due to covid-19 lockdowns forcing widespread store closures across Australia and New Zealand.
The clothing retailer said net profit fell to between $11.1 million and $12.1m in the six months ended Feb 1 from $19.8m a year earlier, with sales falling 6.2% to $170.6m.
The shares fell 2.9% to $6.55 in early trading on the NZX.
Chief executive Stuart Duncan said the group lost 5,432 trading days in the period due to covid lockdowns as the delta and omicron variants spread through the trans-Tasman nations.
Retailers have been contending with the variants as they come to grips with new covid regimes with less direct financial support.
Online sales accounted for 33% of sales in the half, a larger proportion than the 24% it reaped from digital transactions in the 2021 financial year.
Duncan said the group has been negotiating with landlords for rent relief, some of which are still ongoing.
Hallenstein Glasson’s inventory was under control and its balance sheet was “strong”, he said.
The company will formally report its first-half result on March 25.
