HLG Interim Report for the 6 months ended 1 February 2019

20
19
INTERIM REPORT

2

3
05
Chairman’s
Report
08
Statement
of Changes
in Equity
06
Statement of
Comprehensive
Income
09
Statement of
Cash Flows
07
Statement of
Financial Position
11
Notes to
the Finanical
Statements
15
Directory
Contents

5
Chairman’s
Report
The Company advises that
Group sales for the six months
to 1 February 2019 were $151.24
million, an increase of 3.1% over
the corresponding period last
year ($146.76 million). Net profit
after tax was $16.04 million,
an increase of 5.9% over the
corresponding period last year
($15.14 million). The result is in
line with the guidance announced
to the NZX on 13 February 2019.
The prior year figures include the
financial results for the Storm
business, which has since
been sold.
Gross margin on sales was 59.7%
compared with 61.5% in the prior
corresponding period, this was
a result of higher promotional
activity due to the competitive
market place particularly during
November and December. The
cost of doing business fell over
the six month period, continuing
to be well controlled into the
current trading period.
Segment Results
Glassons
Sales in Australia were $48.45
million for the six month
period, which were up 15.9%
against the prior corresponding
period. There were three stores
refurbished during the season in
Bondi, Parramatta and Highpoint
and two new stores were opened
in The Glen in Melbourne and
Liverpool in Sydney. A number
of new stores are currently
under consideration.
Sales in New Zealand were
$51.11 million, which was up 1.6%
against the same period last
year. The Dunedin store was
refurbished during the six month
period and there was significant
strategic investment in digital.
The Newmarket store is currently
being refurbished and upgrades
to the Bayfair, Palmerston North
and Te Rapa stores are planned
for the Winter season.
As with last season, the focus will
be on fashion, speed to market
and customer service to keep the
brand in a strong position in both
New Zealand and Australia.
Hallenstein Brothers
Sales for the six month period
were $51.69 million (including
Australia), with sales growing
1.3% against the same period
last year. The brand continues
to build on its market leading
proposition in New Zealand, and
the three stores in Australia are
delivering solid growth. During the
period, the Hallenstein Brothers
Fulfillment Centre was extended
to support the growth of online
sales. Investment in the brand is
ongoing with a new store opening
in Frankton, Queenstown in May
and with the Botany, Bayfair and
Te Rapa stores being refurbished
during the Winter season.
E-Commerce
Digital sales now represent over
14% of total Group sales and this
is continuing to grow. The key
marketing focus for both Glassons
and Hallenstein Brothers is
building digital engagement. This
remains a key area of investment
for the Group.
Dividend
The Directors have declared an
interim dividend of 20 cents per
share (fully imputed) (last year
20 cents per share) to be paid
on 18 April 2019. The balance
sheet continues to be strong,
inventories well controlled and
the current trading patterns have
allowed the Company to maintain
the dividend payment.
Future Outlook
Although the trading environment
in both New Zealand and Australia
is still challenging, it has been
encouraging that Group sales for
the first seven weeks of the 2019
Winter season are +1.5% ahead
of the same period last year.
Following the appointment of
Mary Devine from 1 April 2019 as
the new Group Managing Director,
the business will continue
to focus on building digital
engagement with our customers,
cost control and improving our
market share in the New Zealand
and Australian fashion apparel
sector in which we operate.
5.9
Net Profit After Tax
%
Warren Bell
Chairman

6
Statement Of Comprehensive Income
For the six months ended 1 February 2019 (unaudited)

$000’s
Sales revenue
Cost of sales
Gross profit
Other operating income

Selling expenses
Distribution expenses
Administration expenses
Total expenses
Operating profit
Finance income
Profit before income tax
Income tax expense
Net profit after tax attributable to the shareholders
of the Holding Company
Other comprehensive income
- Items that will not be reclassified to profit or loss
Increase in share option reserve
- Items that may be susequently reclassified to profit or loss
Fair value (loss)/gain (net of tax) in cash flow hedge reserve
Total comprehensive income for the year attributable to the
shareholders of the Holding Company
Earnings per share
Basic and diluted earnings per share

151,244
(60,995)
90,249
399

(51,622)
(4,252)
(12,373)
(68,247)

22,401
133
22,534
(6,494)
16,040



62
(2,470)
13,632

26.89

146,757
(56,551)
90,206
423

(51,396)
(3,894)
(14,320)
(69,610)

21,019
136
21,155
(6,013)
15,142


64


1,057

16,263

25.39
Half Year
ended
1/2/18
Half Year
ended
1/2/19
The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.

7
Statement Of Financial Position
As at 1 February 2019 (unaudited)
$000’s
EQUITY
Contributed equity
Asset revaluation reserve
Cashflow hedge reserve
Share option reserve
Retained earnings
Total equity
Represented by
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Advances to employees
Prepayments
Inventories
Derivative financial instruments
Total current assets
NON-CURRENT ASSETS
Property, plant and equipment
Investment property
Intangible assets
Deferred tax
Total non-current assets

To t a l assets

CURRENT LIABILITIES
Trade payables
Employee benefits
Other payables
Derivative financial instruments
Taxation payable
Total current liabilities
Total liabilities
Net assets
As at 1/2/18
(Restated)
As at 1/8/18As at 1/2/19
Note

27,955
15,609
(731)
204
24,756
67,793
9,223
580
275
4,295
23,915
77
38,365

42,436
8,464
462
2,321

53,683
92,048
4,004
4,383
11,511
1,092
3,265
24,255
24,255
67,793
3
4

27,060
15,609
(597)
95
22,729
64,896
18,318
488
20 1
4,645
18,676
-
42,328

36,848
8,464
457
2,515

48,284
90,612
7,236
5,370
9,222
842
3,046
25,716
25,716
64,896

27,818
15,609
1,739
155
23,019
68,340
17,453
182
464
3,871
20,959
2,417
45,346
36,811
8,464
560
940
46,775
92,121
5,506
4,786
10,777
-
2,712
23,781
23,781
68,340
The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.

8
Statement Of Changes in Equity
For the six months ended 1 February 2019 (unaudited)
$000’s
Balance at 1 August 2017 (restated)
COMPREHENSIVE INCOME
Profit for year
Cash flow hedges net of tax
Increase in share option reserve
Total comprehensive income
TRANSACTIONS WITH OWNERS
Purchase of treasury stock
Sale of treasury stock
Transfer of share option reserve to
retained earnings
Dividends
(Gain)/loss on sale of treasury stock
transferred to retained earnings
Total transactions with owners
Balance at 1 February 2018
COMPREHENSIVE INCOME
Profit for year
Cash flow hedges net of tax
Increase in share option reserve
Total comprehensive income
TRANSACTIONS WITH OWNERS
Purchase of treasury stock
Dividends
Transfer to employee advances
Total transactions with owners
Balance at 1 August 2018
COMPREHENSIVE INCOME
Profit for year
Cash flow hedges net of tax
Increase in share option reserve
Total comprehensive income
TRANSACTIONS WITH OWNERS
Transfer of share option reserve to
retained earnings
Dividends
Transfer to employee advances
Total transactions with owners
Balance at 1 February 2019
58,823
15,142
1,057
64
16,263
(750)
606
-
(10,046)
-
(10,190)
64,896

12,219
2,336
60
14,615
(50)
(11,846)
725
(11,171)
68,340
16,040
(2,470)
62
13,632
-
(14,216)
37
(14,179)
67,793
17,271
15,142
-
-
15,142
-
-
296
(10,140)
160
(9,684)
22,729

12,219
-
-
12,219
-
(11,929)
-
(11,929)
23,019
16,040
-
-
16,040
13
(14,316)
-
(14,303)
24,756
327
-
-
64
64
-
-
(296)
-
-
(296)
95

-
-
60
60
-
-
-
-
155
-
-
62
62
(13)
-
-
(13)
204
(1,654)
-
1,057
-
1,057
-
-
-
-
-
-
(597)

-
2,336
-
2,336
-
-
-
-
1,739
-
(2,470)
-
(2,470)
-
-
-
-
(731)
15,609
-
-
-
-
-
-
-
-
-
-
15,609

-
-
-
-
-
-
-
-
15,609
-
-
-
-
-
-
-
-
15,609
(2,009)
-
-
-
-
(750)
606
-
94
(160)
(210)
(2,219)

-
-
-
-
(50)
83
725
758
(1,461)
-
-
-
-
-
100
37
137
(1,324)
29,279
-
-
-
-
-
-
-
-
-
-
29,279

-
-
-
-

-
-
-
-
29,279
-
-
-
-

-
-
-
-
29,279
Share
capital
Tr e a s u r y
stock
Asset
revaluation
reserve
Cash flow
hedge
reserve
Share
option
reserve
Retained
earnings
To t a l
equity
The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.

9
Statement Of Cash Flows
For the six months ended 1 February 2019 (unaudited)
$000’s
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Sales to customers
Rent received
Interest received
Interest on debtors
Cash was applied to:
Payments to suppliers
Payments to employees
Taxation paid
Net cash flows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Proceeds from sale of property, plant and equipment and intangible assets
Repayment of employee advances
Cash was applied to:
Purchase of property, plant and equipment and intangible assets

Net cash flows applied to investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was provided from:
Proceeds from sale of treasury stock and dividends
Cash was applied to:
Dividend paid
Purchase of treasury stock
Net cash flows applied to financing activities
Net (decrease)/increase in funds held
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period


150,846
399
125
8
151,378
103,696
25,914
6,360
135,970
15,408


46
226
272

9,694
9,694
(9,422)

100
100

14,316
-
14,316
(14,216)
(8,230)
17,453
9,223


146,507
384
126
10
147,027
94,362
25,609
6,345
126,316
20,711


5
37
42
4,798
4,798
(4,756)
701
701

10,140
750
10,890
(10,189)
5,766
12,552
18,318
Half Year
ended
1/2/18
Half Year
ended
1/2/19
The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.

10
Statement Of Cash Flows (continued)
RECONCILIATION OF SURPLUS AFTER TAXATION
TO CASH FLOWS FROM OPERATING ACTIVITIES
For the six months ended 1 February 2019 (unaudited)
$000’s
NET PROFIT AFTER TAXATION
ADD/(DEDUCT) ITEMS CLASSIFIED AS INVESTING OR FINANCING ACTIVITIES
(Gain)/loss on sale of plant and equipment
ADD/(DEDUCT) NON CASH ITEMS
Depreciation and amortisation
Deferred taxation
Revaluation of financial instruments
Share option expense
ADD/(DEDUCT) MOVEMENTS IN WORKING CAPITAL ITEMS
Taxation payable
Trade and other receivables and prepayments
Trade and other payables and employee benefits
Inventories
NET CASH FLOWS FROM OPERATING ACTIVITIES

16,040


(34)
4,155
(419)
-
62
553
(822)
(1,171)
(2,956)
15,408

15,142


38
4,392
(857)
(12)
64


524
(1,022)
513
1,929
20,711
Half Year
ended
1/2/18
Half Year
ended
1/2/19
The notes to the financial statements form an integral part of and are to be read in conjunction with these financial statements.

11
Notes To The Financial Statements
For the six months ended 1 February 2019 (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
mens and womens 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 also 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 29 March 2019.
1.2 General accounting policies
Statement of compliance
These interim financial statements for the half year ended 1 February 2019 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 2018 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 2018, and the audited financial statements to 1 August 2018,
except for the adoption of new and amended standards as set out below.
A number of new or amended standards became applicable for the current reporting period and the Group had to change
its accounting policies:
• NZ IFRS 9: Financial instruments; and
• NZ IFRS 15: Revenue from contracts with customers
The Group has performed the assessment and concluded that there is no material adjustment from adoption of these
standards and no retrospective adjustments are required in the consolidated interim financial statements.
The financial statements for the six months ended 1 February 2019 and 1 February 2018 are unaudited. The comparative
information for the year ended 1 August 2018 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.
1.3 Reclassification in accounting for investment property
The Group owns properties leased in full or partially to third parties and earning rental income which have been previously
incorrectly classified as property, plant and equipment, but should have been recognised as investment property. As the
Group’s policy is to keep the land and buildings at fair value, the revaluation gains and losses have been recognised through
other comprehensive income to asset revaluation reserve. However, the revaluation gains and losses related to investment
properties should have been recognised in profit before income tax. The correction of this error results in a reclassification
from property, plant and equipment to investment property of $8.46 million, a reclassification from the asset revaluation
reserve to retained earnings of $0.3 million, and an adjustment to deferred tax and retained earnings of $0.35 million.

12
Notes To The Financial Statements
For the six months ended 1 February 2019 (unaudited)

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 below. 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.
The Directors have assessed the impact of this adjustment on transactions presented in the statement of comprehensive
income for the half year ended 1 February 2019 and have concluded that no significant errors occurred. As a result, the
statement of financial position and statement of changes in equity as at 1 February 2018 have been restated to reflect
the adjustments made to the opening balances disclosed above only. There has been no restatement of the statement
of comprehensive income or earnings per share. Directors concluded that presentation of a third balance sheet is not
required because the adjustment related to reclassifications, resulting in no significant impact on net assets position.
Statement of financial position (extract)

Asset revaluation reserve
Retained earnings
Total equity
Property, plant and equipment
Investment property
Deferred tax asset
Total non-current assets
Statement of financial position (extract)

Asset revaluation reserve
Retained earnings
Total equity
Property, plant and equipment
Investment property
Deferred tax asset
Total non-current assets
2016
$000
12,617
17,826
55,877

36,227
-
2,291
39,011
15,915
22,074
64,547

45,312
-
2,165
47,934
Increase
(decrease)
$000
Increase /
(decrease)
$000
2016
(Restated)
$000
As at
01/02/18
(Restated)
$000
As at
01/02/18
$000
(306)
656
350

(8,464)
8,464
350
350
(306)
656
350

(8,464)
8,464
350
350
12,311
18,482
56,227

27,763
8,464
2,641
39,361
15,609
22,729
64,896

36,848
8,464
2,515
48,284
The error relates to 2016 and prior periods and has been corrected in the opening balances of the comparative period by
restating each of the affected financial statement line items as follows:

13
Notes To The Financial Statements
For the six months ended 1 February 2019 (unaudited)
$000’s
For the period ended 1 February 2019
INCOME STATEMENT
Sales revenue from
external customers
Cost of sales
Gross profit
Finance income
Depreciation and
software amortisation
Profit/(loss) before income tax
Income tax expense
Profit/(loss) after income tax
BALANCE SHEET
Current assets
Non-current assets
Current liabilities
Purchase of property, plant
and equipment and intangibles
$000’s
For the period ended 1 February 2018
INCOME STATEMENT
Sales revenue from
external customers
Cost of sales
Gross profit
Finance income
Depreciation and
software amortisation
Profit/(loss) before income tax
Income tax expense
Profit/(loss) after income tax
BALANCE SHEET
Current assets
Non-current assets
Current liabilities
Purchase of property, plant
and equipment and intangibles
151,244
(60,995)
90,249
133
4,155
22,534
(6,494)
16,040
38,365
53,683
24,255

9,694

146,757
(56,551)
90,206
136

3,947
21,155
(6,013)
15,142
42,328
48,284
25,716

4,798
-
-
-
6

-
1
-
1
805
-
32
-

-
-
-
6

-
3
-
3
(89)
-
33

-
-
-
-
-

187
368
(103)
265
(1,822)
19,622
413
1,605

-
-
-
-

186
360
(101)
259
1 6 7
17,588
4 3 1

18
-
-
-
3

-
(52)
15
(37)
1,211
(58)
203

-

3,620
(1,409)
2,211
2

128
(2,051)
598
(1,453)
8 74
1,118
1,725

122
51,687
(21,358)
30,329
65

1,427
6,862
(1,942)
4,920
18,396
9,238
6,810

1,282

51,029
(20,143)
30,886
45

1,435
6,976
(2,067)
4,909
16,586
9,634
6,292

1,207

48,447
(18,264)
30,183
25
1,429
7,485
(2,252)
5,233
9,284
10,836
9,686

3,076

41,814
(14,508)
27,306
23

1,113
8,249
(2,312)
5,937
11,477
9,067
9,194

1,991

51,110
(21,373)
29,737
34

1,112
7,870
(2,212)
5,658
10,491
14,045
7,111

3,731

50,294
(20,491)
29,803
60

1,085
7,618
(2,131)
5,487
13,313
10,877
8,041

1,460
Glassons
New Zealand
Glassons
New Zealand
Glassons
Australia
Glassons
Australia
Hallenstein
Brothers
Hallenstein
Brothers
Storm
Storm
Hallenstein
Property
Hallenstein
Property
Parent
Parent
To t a l
Group
To t a l
Group
Segment Results

14
2.2 INCOME AND EXPENSES
Profit before income tax includes the following specific expenses:
$000’s
Occupancy costs
Wages, salaries and other short term benefits
Depreciation, amortisation and impairment of property, plant and equipment
(Gain)/loss on sale of property, plant and equipment

2.3 DIVIDENDS
Final dividend for the period ended 1 August 2018
Final dividend for the period ended 1 August 2017
To t a l
3 INVENTORIES
During the period ended 1 February 2019, the Group recognised in the statement of comprehensive income, a write down
of finished goods inventory to provide for obsolescence of $231,000 (2018: $240,000).
4 PROPERTY, PLANT AND EQUIPMENT
Acquisitions and disposals
During the six months ended 1 February 2019, the Group acquired assets with a total cost of $9,694,000 (2018: $4,904,000).
Assets with a net book value of $12,000 were disposed of during the six months ended 1 February 2019 (2018: $43,000),
resulting in a net gain on disposal of $34,000 (2018: loss on disposal of $38,000).
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 2019, are consistent with those disclosed in the audited financial statements for
the year ended 1 August 2018.
6 COMMITMENTS
6.1 Capital expenditure commitments
$000’s
Commitments in relation to store fitouts and warehouse expansion
6.2 Operating lease commitments
$000’s
Total operating lease commitments
7 EVENTS SUBSEQUENT TO BALANCE DATE
On 19 February 2019 the Group announced the resignation of its Group Chief Executive Officer Mark Goddard due to
personal reasons. On 15 March 2019 the Group announced the appointment of Mary Devine as Group Managing Director.
Mary originally joined the Board of Hallenstein Glasson Holdings Limited in July 2018.
Half Year
ended
1/2/18
Half Year
ended
1/2/18
Full Year
ended
1/8/18
Full Year
ended
1/8/18
$000’s
Half Year
ended
1/2/18
Half Year
ended
1/2/19
Half Year
ended
1/2/19
cents per
share
Half Year
ended
1/2/19
Half Year
ended
1/2/19
Half Year
ended
1/2/18
Half Year
ended
1/2/18
$000’s
Half Year
ended
1/2/19
cents per
share


15,113
25,573
4,155
(34)
14,316
-
14,316
-
81,314
24.00
-
24.00


15,786
27,593
4,392
38
-
10,140
10,140
3,867
88,148
-
17.00
17.00
7,998
89,623
Notes To The Financial Statements
For the six months ended 1 February 2019 (unaudited)

15
Directory
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 91-148
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

16
HALLENSTEINS.COM
GLASSONS.COM
HALLENSTEINGLASSON.CO.NZ