Hallenstein Glasson Holdings Ltd., New Zealand based major clothing retailer, informed that the company had to lower prices to achieve sales due to recession. Due to lower margins, the company witnessed a 23% fall in full-year profit.

Via a statement sent to the stock exchange, the company said that during the year ended August 1, net income was between NZ$12.2 million ($8 million) and NZ$12.4 million, while a rise by 2.3 percent to NZ$198.2 million was seen in full-year sales.

The company said, "Consumer spending has slumped in New Zealand as the economy goes through its worst recession in three decades. The early onset of cold winter weather boosted sales in the second half, as did a recovery in consumer confidence."

If adhered to Chief Executive Officer Roy Dillon then it was via aggressive pricing strategy which had been at the expense of margin that the sales were achieved.

The company said that while second-half sales rose 7.6 percent, second-half profit remained unchanged from the year earlier at NZ$6.6 million.