HLG Interim Report for the 6 months ended 1 February 2018

AA
INTERIM REPORT

01
BB
02
Chairman’s Report
04
Statement of Comprehensive Income
05
Statement of Financial Position
06
Statement of Changes in Equity
07
Statement of Cash Flows
09
Notes to the Financial Statements
12
Directory
CONTENTS

0302
The company advises that Group sales
for the 6 months to 1 February 2018
were $146.8 million, an increase of 19.4%
over the corresponding period last year
($122.9 million). Like for like sales for the
group were +10.8% on the prior year.
Gross margin rate for the Group for the
six month period was 61.5% which was
3.4 percentage points up on the prior
year (58.1%). This was achieved through
a strong sales performance, our improved
buying strategy and a reduction in
promotional activity and discounting
across all brands.
The net profit after tax was $15.1 million, an
increase of 64.9% over the corresponding
period last year ($9.2 million). The result
is in line with the guidance announced to
the NZX on 16 February 2018.
SEGMENT RESULTS
Glassons
Sales in New Zealand for the six months
were $50.3 million, an increase of 9.8%
on the prior year, and sales in Australia
for the six months were $41.8 million,
an increase of 60.5% on the prior year.
Both countries delivered a very strong
Christmas trading period.
The team’s focus on fashion, speed to
market, customer service and digital
engagement continues to deliver strong
sales as well as a reduced dependency
on discounting and promotions in
both markets. This, together with the
strong focus placed on Australia by
the management team and along with
the two new store openings, including
Melbourne CBD, has delivered the
strong growth.
Hallenstein Brothers
Sales for the six months were $51.0 million
(including Australia), an increase of 8.8%
on the prior year. Hallenstein Brothers
continues to build and evolve its
established leadership position in
New Zealand, as well as its three stores
in Australia. The focus on fashion,
speed to market, customer service and
digital engagement continues to deliver
solid results.
Storm
Storm sales were $3.6 milion which was
a decrease of 12.9% on the prior year.
During the period under review, the
planned closure of two stores resulted
in an impairment charge of $1.7 million
being recorded. Subsequent to balance
date, the Group has entered into an
unconditional agreement to sell the
assets of Storm. The stores planned
for closure do not form part of the sale
and will close at the end of April.
E-Commerce
For the six month period, online sales
have grown to over 11% of Group turnover.
Our move away from traditional marketing
to digital, social and influencer events,
together with our fashion and speed to
market continues to deliver and build
engagement for both Glassons and
Hallenstein Brothers. The Group will
continue to invest and build this area as
we continue to further differentiate
ourselves from the competition.
DIVIDEND
The Directors have declared a final
dividend of 20 cents per share (fully
imputed) to be paid on 13th April 2018.
The balance sheet continues to be
strong, inventories well controlled
and the current trading patterns have
allowed the company to increase the
dividend payment.
FUTURE OUTLOOK
Total group sales for the first seven weeks
of the 2018 winter season have been
encouraging, with an increase of 18.2%
on the same period last year. E-commerce
sales growth continues to build and will
remain a key focus for the Group. Due to
the sale of Storm, from 1 May 2018 sales
versus previous year will be affected.
Following the sale of Storm, the Group’s
focus is on building and growing Glassons
and Hallenstein Brothers in both the
New Zealand and Australian markets, with
each of the brands in a strong position
going in to the key winter trading months.
Warren Bell
Chairman
CHAIRMAN’S
REPORT
64%
NET PROFIT
AFTER TAX UP BY
+
0203

0504
STATEMENT OF
FINANCIAL POSITION
As at 1 February 2018 (unaudited)
STATEMENT OF
COMPREHENSIVE INCOME
For the six months ended 1 February 2018 (unaudited)
Group
$000’s Note As at 1/2/18 As at 1/2/17 As at 1/8/17
EQUITY
Contributed equity 27,061 27,637 27,270
Asset revaluation reserve 15,915 12,617 15,915
Cashflow hedge reserve(597) (521) (1,654)
Share option reserve 94 259 327
Retained earnings 22,074 17,169 16,615
Total equity
64,547 57,161 58,473
Represented by
CURRENT ASSETS
Cash and cash equivalents 18,318 11,650 12,552
Trade and other receivables 488 353 779
Advances to employees 201 249 238
Prepayments 4,645 3,642 3,873
Inventories3 18,676 17,637 20,605
Total current assets
42,328 33,531 38,047
NON-CURRENT ASSETS
Property, plant and equipment4 45,312 40,445 44,864
Intangible assets 457 431 539
Deferred tax 2,165 2,006 1,694
Total non-current assets
47,934 42,882 47,097
Total assets
90,262 76,413 85,144
CURRENT LIABILITIES
Trade payables 7,236 4,195 9,169
Employee benefits 5,370 4,258 4,500
Other payables 9,221 8,495 8,187
Derivative financial instruments 842 723 2,298
Taxation payable 3,046 1,581 2,517
Total current liabilities
25,715 19,252 26,671
Total liabilities
25,715 19,252 26,671
Net assets
64,547 57,161 58,473
Group

$000’s
Note
Half Year
ended
1/2/18
Half Year
ended
1/2/17
Sales revenue
146,757 122,911
Cost of sales(56,551) (51,555)
Gross profit
90,206 71,356
Other operating income 423 387
Selling expenses(51,396) (44,238)
Distribution expenses(3,894) (3,732)
Administration expenses(14,320) (11,084)
Total expenses
2.2(69,610) (59,054)
Operating profit
21,019 12,689
Finance income 136 135
Profit before income tax
21,155 12,824
Income tax(6,013) (3,639)
Net surplus attributable to the shareholders of the parent
15,142 9,185
OTHER COMPREHENSIVE INCOME
Fair value gain in cash flow hedge reserve net of tax 1,057 1,897
Increase in share option reserve 64 56
Total comprehensive income for the year
16,263 11,138
EARNINGS PER SHARE
Basic and diluted earnings per share 25.39 15.40
The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.

0706
STATEMENT OF
CASH FLOWS
For the six months ended 1 February 2018 (unaudited)
The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.
STATEMENT OF
CHANGES IN EQUITY
For the six months ended 1 February 2018 (unaudited)
Group

$000’s
Share
capital
Treasury
stock
Asset
revaluation
reserve
Cash flow
hedge
reserve
Share
option
reserve
Retained
earnings
Total
equity
Balance at 1 August 2016
29,279 (1,630) 12,617 (2,418) 203 17,826 55,877
COMPREHENSIVE INCOME
Profit for year – – – – – 9,185 9,185
Cash flow hedges net of tax – – – 1,897 – – 1,897
Increase in share option reserve – – – – 56 – 56
Total comprehensive income
– – – 1,897 56 9,185 11,138
TRANSACTIONS WITH OWNERS
Purchase of treasury stock – (100) – – – – (100)
Dividends – 88 – – – (9,842)(9,754)
Total transactions with owners
– (12) – – – (9,842)(9,854)
Balance at 1 February 2017
29,279 (1,642) 12,617 (521) 259 17,169 57,161
COMPREHENSIVE INCOME
Profit for year – – – – – 8,084 8,084
Revaluation net of tax – – 3,298 – – – 3,298
Cash flow hedges net of tax – – – (1,133) – – (1,133)
Increase in share option reserve – – – – 73 – 73
Total comprehensive income
– – 3,298 (1,133) 73 8,084 10,322
TRANSACTIONS WITH OWNERS
Purchase of treasury stock – (500) – – – – (500)
Sale of treasury stock – 51 – – – – 51
Transfer of share option reserve to retained earnings – – – – (5) 5 –
Dividends – 87 – – – (8,648)(8,561)
Gain/loss on sale of treasury stock transferred
to retained earnings
– (5) – – – 5 –
Total transactions with owners
– (367) – – (5)(8,638)(9,010)
Balance at 1 August 2017
29,279 (2,009) 15,915 (1,654) 327 16,615 58,473
COMPREHENSIVE INCOME
Profit for year – – – – – 15,142 15,142
Cash flow hedges net of tax – – – 1,057 – – 1,057
Increase in share option reserve – – – – 64 – 64
Total comprehensive income
– – – 1,057 64 15,142 16,263
TRANSACTIONS WITH OWNERS
Purchase of treasury stock – (750) – – – – (750)
Sale of treasury stock – 607 – – – – 607
Transfer of share option reserve to retained earnings – – – – (297) 297 –
Dividends – 94 – – – (10,140)(10,046)
Gain/loss on sale of treasury stock transferred
to retained earnings
– (160) – – – 160 –
Total transactions with owners
– (209) – – (297)(9,683)(10,189)
Balance at 1 February 2018
29,279 (2,218) 15,915 (597) 94 22,074 64,547
Group

$000’s
Half Year
ended
1/2/18
Half Year
ended
1/2/17
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Sales to customers 146,507 124,218
Rent received 384 387
Interest received 126 121
Interest on debtors 10 13
147,027 124,739
Cash was applied to:
Payments to suppliers 94,362 82,353
Payments to employees 25,609 23,730
Taxation paid 6,345 3,509
126,316 109,592
Net cash flows from operating activities
20,711 15,147
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Proceeds from sale of property, plant and equipment and intangible assets 5 3
Repayment of employee advances 37 97
42 100
Cash was applied to:
Purchase of property, plant and equipment and intangible assets 4,798 7,934
4,798 7,934
Net cash flows applied to investing activities
(4,756) (7,834)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Proceeds from sale of treasury stock and dividends 701 88
701 88
Cash was applied to:
Dividend paid 10,140 9,842
Purchase of treasury stock 750 100
10,890 9,942
Net cash flows applied to financing activities
(10,189) (9,854)
Net increase in funds held
5,766 (2,541)
Cash and cash equivalents at the beginning of the period
12,552 14,191
Cash and cash equivalents at the end of the period
18,318 11,650

0908
STATEMENT OF
CASH FLOWS (continued)
For the six months ended 1 February 2018 (unaudited)
Group

$000’s
Half Year
ended
1/2/18
Half Year
ended
1/2/17
NET SURPLUS AFTER TAXATION
15,142 9,185
ADD ITEM CLASSIFIED AS INVESTING ACTIVITY
Loss on sale of plant and equipment 38 31
ADD/(DEDUCT) NON CASH ITEMS
Depreciation, amortisation and impairment of property, plant and equipment 4,392 3,747
Deferred tax benefit(857) (453)
Revaluation of financial instruments(12) (338)
Share option expense 64 56
ADD/(DEDUCT) MOVEMENTS IN WORKING CAPITAL ITEMS
Taxation payable 524 582
Trade and other receivables and prepayments(1,022) 1,084
Trade and other payables and employee benefits 513 (1,110)
Inventories 1,929 2,363
Net cash flows from operating activities
20,711 15,147
The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.
NOTES TO THE
FINANCIAL STATEMENTS
For the six months ended 1 February 2018 (unaudited)
1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1.1 General information
Reporting entity
Hallenstein Glasson Holdings Limited (“Company” or “Parent”) together with its subsidiaries (the “Group”) is a retailer of men’s
and women’s clothing in New Zealand and Australia.
The Company is a limited liability company incorporated and domiciled in New Zealand. The address of its registered office is
Level 3, 235-237 Broadway Newmarket, Auckland.
Statutory base
Hallenstein Glasson Holdings Limited is a company registered under the Companies Act 1993 and is a FMC reporting entity
under Part 7 of the Financial Markets Conduct Act 2013. The Company is listed on the New Zealand Stock Exchange (NZX).
The financial statements of the Group have been prepared in accordance with the requirements of Part 7 of the Financial
Markets Conduct Act 2013 and the NZX Main Board Listing Rules.
The financial statements were approved for issue by the Board of Directors on 28 March 2018.
1.2 General accounting policies
Statement of compliance
These interim financial statements have been prepared in accordance with Generally Accepted Accounting Practice in
New Zealand (NZ GAAP), NZ IAS 34 and IAS 34 Interim Financial Reporting and should be read in conjunction with the
2017 Annual Report.
Basis of preparation of financial statements
The accounting policies used in the preparation of these financial statements are consistent with those used in the previously
published interim financial statements to 1 February 2017, and the audited financial statements to 1 August 2017.
The financial statements for the six months ended 1 February 2018 and 1 February 2017 are unaudited. The comparative
information for the year ended 1 August 2017 is audited.
Entities reporting
The financial statements are the consolidated financial statements of the Group comprising Hallenstein Glasson Holdings
Limited and subsidiaries, together they are referred to in these financial statements as ‘the Group’. The parent and its
subsidiaries are designated as for-profit entities for financial reporting purposes.
2 PERFORMANCE INFORMATION
2.1 Segment information
The Group has determined its primary segments to be business segments comprising:
• Hallenstein Brothers (Hallenstein Bros Ltd (New Zealand) and Hallenstein Brothers Australia Limited (Australia))
• Glassons Limited (New Zealand)
• Glassons Australia Limited (Australia)
• Storm (Retail 161 Limited (New Zealand) and Retail 161 Australia Limited (Australia))
• Hallenstein Properties Limited (New Zealand)
• Hallenstein Glasson Holdings Limited – Parent (New Zealand)
Segment results and key balances are shown on following page. Segment assets and liabilities are measured in the same way
as in the financial statements. Assets and liabilities are allocated based on the operations of the segment.
RECONCILIATION OF SURPLUS AFTER TAXATION TO CASH FLOWS FROM OPERATING ACTIVITIES

1110
Segment results

$000’s
Glassons
New Zealand
Glassons
Australia
Hallenstein
BrothersStorm
Hallenstein
PropertyParent
Total
Segments
For the period ended 1 February 2018
INCOME STATEMENT
Sales revenue from external customers 50,294 41,814 51,029 3,620 – – 146,757
Cost of sales(20,491) (14,508) (20,143) (1,409) – – (56,551)
Gross profit
29,803 27,306 30,886 2,211 – – 90,206
Finance income 60 23 45 2 – 6 136
Depreciation and software amortisation 1,085 1,113 1,435 128 186 – 3,947
Profit/(loss) before income tax 7,618 8,249 6,976 (2,051) 360 3 21,155
Income tax(2,131) (2,312) (2,067) 598 (101) – (6,013)
Profit/(loss) after income tax
5,487 5,937 4,909 (1,453) 259 3 15,142
BALANCE SHEET
Current assets 13,313 11,477 16,586 874 167 (89) 42,328
Non current assets 10,877 9,067 9,634 1,118 17,238 – 47,934
Current liabilities 8,040 9,194 6,292 1,725 431 33 25,715
Purchase of property, plant and
equipment and intangibles
1,460 1,991 1,207 122 18 – 4,798

$000’s
Glassons
New Zealand
Glassons
Australia
Hallenstein
BrothersStorm
Hallenstein
PropertyParent
Total
Segments
For the period ended 1 February 2017
INCOME STATEMENT
Sales revenue from external customers 45,802 26,049 46,904 4,156 – – 122,911
Cost of sales(19,687) (9,748) (20,623) (1,497) – – (51,555)
Gross profit
26,115 16,301 26,281 2,659 – – 71,356
Finance income 88 – 43 4 – – 135
Depreciation and software amortisation 1,287 1,023 1,151 146 140 – 3,747
Profit before income tax 5,701 1,640 5,029 44 410 – 12,824
Income tax(1,613) (470) (1,428) (13) (115) – (3,639)
Profit after income tax
4,088 1,170 3,601 31 295 – 9,185
BALANCE SHEET
Current assets 12,710 3,934 2,857 12,033 (16) 2,013 33,531
Non current assets 10,314 7,426 9,484 1,124 14,534 – 42,882
Current liabilities 7,191 5,267 5,602 966 193 33 19,252
Purchase of property, plant and
equipment and intangibles
1,462 2,600 3,576 296 – – 7,934
NOTES TO THE
FINANCIAL STATEMENTS
For the six months ended 1 February 2018 (unaudited)
2.2 Income and expenses
Profit before income tax includes the following specific expenses:

$000’s
Half Year
ended
1/2/18
Half Year
ended
1/2/17
Occupancy costs 15,786 13,302
Wages, salaries and other short term benefits 27,593 23,730
Depreciation, amortisation and impairment of property, plant and equipment 4,392 3,746
Loss on sale of property, plant and equipment 38 31
2.3 Dividends

Half Year
ended
1/2/18
Half Year
ended
1/2/17
Half Year
ended
1/2/18
Half Year
ended
1/2/17
cents
per share
cents
per share$000’s$000’s
Final dividend for the period ended 1 August 2017 17.00 – 10,140 –
Final dividend for the period ended 1 August 2016 – 16.50 – 9,842
Total
17.00 16.50 10,140 9,842
3 INVENTORIES
During the period ended 1 February 2018, the Group recognised in the Statement of Comprehensive Income, write down
of finished goods inventory to provide for obsolescence of $240,000 (2017: $652,000).
4 PROPERTY, PLANT AND EQUIPMENT
Acquisitions and disposals
During the six months ended 1 February 2018, the Group acquired assets with a total cost of $4,904,000 (2017: $7,934,000).
Assets with a net book value of $43,000 were disposed of during the six months ended 1 February 2018 (2017: $100,000),
resulting in a net loss on disposal of $38,000 (2017: $31,000).
5 RELATED PARTY TRANSACTIONS
The Group enters into transactions with related parties. Details of related parties, and the types of transactions entered into
during the period ended 1 February 2018, are consistent with those disclosed in the audited financial statements for the
year ended 1 August 2017.
6 COMMITMENTS
6.1 Capital expenditure commitments

$000’s
Half Year
ended
1/2/18
Half Year
ended
1/2/17
Full Year
ended
1/8/17
Commitments in relation to store fitouts – 270 792
6.2 Operating lease commitments

$000’s
Half Year
ended
1/2/18
Half Year
ended
1/2/17
Full Year
ended
1/8/17
Total operating lease commitments 81,314 71,493 83,518
7 EVENTS SUBSEQUENT TO BALANCE DATE
On 16 March 2018 the Group announced that it entered into an unconditional agreement for the sale of the
Storm business assets. The settlement is expected to be completed by 30 April 2018.
NOTES TO THE
FINANCIAL STATEMENTS
For the six months ended 1 February 2018 (unaudited)

131214
AUDITORS
PricewaterhouseCoopers
BANKERS
ANZ Bank New Zealand
Ltd.
REGISTERED OFFICE
Level 3
235-237 Broadway
Newmarket
Auckland 1023
Tel +64 9 306 2500
Fax +64 9 306 2523
POSTAL ADDRESS
PO Box 91148
Auckland Mail Centre
Auckland 1141
SHARE REGISTRAR
Computershare Investor
Services Limited
Private Bag 92119
Auckland 1142
Tel +64 9 488 8700
WEBSITES
hallensteinglasson.co.nz
glassons.com
hallensteins.com
stormonline.com
DIRECTORY
12

1414
HALLENSTEINGLASSON.CO.NZ