Hong Kong apparel retailer Bossini says sales are falling as it shutters unprofitable stores.

The company says revenue in the first half to December 31 fell to HK$1.27 billion (US$163.7 million) – down from HK$1.33 billion a year earlier.

The company blamed the fall on the closures of its underperforming stores in China and Taiwan. It shuttered 47 stores in China, seven in Taiwan and two in Singapore.

“Accompanied by intensely fierce competition in the apparel retail sector and the growth of e-commerce, which is increasingly taking a share from offline channels, the situation in mainland China remains challenging,” said the company in a statement.

The company plans to continue to partner with well-known brands to launch co-branded and licensed clothing and merchandise to extend and enhance its brand visibility, says its CEO Edmund Mak.

While optimistic, Bossini said it is cautious about the trading environment as more foreign and local brands are expanding their operations, increasing the competition and curbing sales.