Trinity reports profit decline
Hong Kong high-end to luxury menswear company Trinity has seen its profit for the first half drop to HK$150 million (US$19.3 million) from HK$265 million in 2012.
The company attributed the decline to the slowdown in the Chinese Mainland, investment in Europe to build strong management teams and global marketing activities, and lower shared profit from the Salvatore Ferragamo joint venture companies after the partial share sale at the end of 2012.
Revenue decreased by 2.1 per cent on the back of a drop in same-store sales from the mainland China of 10.2 per cent.
The Hong Kong and Macau market was more resilient with same-store sales growth of four per cent while Taiwan declined by 6.3 per cent.
But MD Wong Yat Ming said the company remain confident with its medium to long-term strategic direction in building its core brands globally.
“Trinity is deepening its collaboration with British Heritage Brands to expand Kent & Curwen into the US and Europe with funding via a loan which has the option to convert into equity,” he said.
With an earlier licensing agreement in place, flagship stores in London and New York will be opened this autumn and Kent & Curwen will also be stocked in leading department stores in the US and UK.
“Gieves & Hawkes, Kent & Curwen and Cerruti are all positioned for growth given their impressive heritage and experienced management teams now in place to guide expansion in the US, Europe and Greater China,” said Ming.
Trinity manages five international menswear brands namely Kent & Curwen, Cerruti, Gieves & Hawkes, D’urban and Intermezzo. It operates 450 retail stores in Greater China, plus another 13 retail stores in Europe.