Hallenstein Glasson Holdings is making positive noises about the company's outlook after reporting a more than 40 percent plunge in first half net profit.
The clothing retailer's net profit fell to $6.4 million for the six months to 1 February, compared with $10.4 million in the same six months a year earlier.
First half sales were down 8 percent.
Hallenstein's chief executive, Graeme Popplewell, had been forthright about the problem.
He said in January that the company failed to have the right balance of product and wasn't offering its customers what they wanted through the summer season.
Now, he says, the second half is looking more promising.
Although early winter sales are only modestly higher, they are a reversal of the trend experienced in the first half.
Head of wealth research at Craigs Investment Partners, Mark Lister, says the result is disappointing but the company is showing signs of picking up.
Mr Lister says on the positive side the interim dividend declined by much less than the net profit and sales for the first six weeks of the second half are up 2 percent compared to the prior period.
He says the company does have the ability to turn things around.
A Glassons outlet. Photo: RNZ