China’s men’s business casual apparel retailer Xiniya Fashion has reported a sharp decline on a softening Chinese economy.

Xiniya said net profit in the third quarter decreased 89.4 per cent to 6 million yuan ($984 804) from 56.4 million yuan a year ago.

Revenue decreased 6.7 per cent to 389.8 million yuan from 417.9 million yuan in 2012.

The company’s network of authorised retailers had a net reduction of 23 outlets during the period, with 78 new outlets opening and 101 closing, taking the total to 1635.

“Our business continued to face significant challenges during the third quarter due to the continued softness of the Chinese economy and the aggressive discounting done by other menswear brands which has reduced the overall profitability of the industry as a whole,” said chairman and CEO Qiming Xu.

Xiniya said the prospects for China’s menswear industry remain depressed and it expects revenue in the fourth quarter to decrease 12 per cent.