Hong Kong fast fashion chain Bossini has reported a modest boost in sales in the half year to December.
Group revenue increased by four per cent year-on-year to HK$1,319 million (US$170,056,190) and gross profit for the period under review was HK$665 million (US$85,737,200)
Gross margin was slightly improved, up by one percentage point to 50 per cent. And the group reduced its inventory turnover by a full week – from 99 days to 92 days.
In its earnings statement, the company said the result was achieved “despite challenging economic and political factors”.
“Record-high sales were registered in the Hong Kong and Macau retail operation, an achievement with 22 consecutive quarters of positive same-store sales growth. A milestone was achieved for mainland China operations as our efforts to increase shop productivity and adopt stringent cost control measures in the preceding financial year helped us to achieve a turnaround in operating profit and achieve seven consecutive quarters of positive same-store gross profit growth.”
Bossini said Taiwan also recorded an improved performance, helped by ongoing efforts to enhance shop productivity and implement cost-control measures, which led to the fifth consecutive quarter of positive same-store sales growth.
“During the six months under review, the group maintained a cautious approach to expansion in the face of ongoing global uncertainty. The group had presence in 35 countries and regions worldwide as of December 31. The overall store count decreased by 13 against the previous year to 949, of which 268 were directly managed and 681 were franchised.
CEO Edmund Mak said that although the US economy is expected to follow a stable growth trajectory in the year ahead, growth in mainland China is expected to slow further.
“The apparel retailing sector remains highly competitive throughout the region. Nevertheless, the group is confident in pursuing the appropriate strategies to mitigate external risks.
“We will focus on continuing to streamline productivity in our existing stores, enhancing both efficiency and our overall services in order to provide memorable and vital shopping experiences which reinforce our dynamic and energetic brand image.
“In mainland China, Taiwan and Singapore, meanwhile, we will continue to implement best practice solutions which have proven successful in our Hong Kong operation. We will also continue to expand our footprint in export markets which show good potential for growth and to partner with well-known brands to launch co-branded and licensed clothing and merchandise that extends and enhances our brand visibility and stature.”
Mak concluded: “Going forward, the group will continue to create appealing, competitive and quality everyday wear that drives sustainable growth, profitability and customer satisfaction. With a firm focus on our “be happy” core brand value, we will continue to strengthen our competitive edge and endeavour to enhance the value we offer to our shareholders.”
