Milan Station sales slump
Handbag retailer Milan Station says its first half year sales slumped 28.4 per cent in its key Hong Kong market to HK$171 million.
Milan Station has eight self-branded retail stores in the territory and sells online through joint ventures with other groups and in its own right.
And in Macau, as the territory’s gambling industry and tourism hit their troughs, Milan Station closed its stores there during the period, thus reporting a 78.6 per cent decline in revenues to HK$11.8 million. It also exited its franchise partnership in Singapore.
Milan Station’s total revenue for the period fell 36.6 per cent to HK$208.8 million, with Hong Kong accounting for 82 per cent of sales. By increasing the proportion of direct imported goods from European partners it was able to maintain its gross profit at about HK$48.1 million, down 34.9 per cent year on year. Its loss for the period decreased by 65.6 per cent to HK$6.8 million due to effective cost control and a one-off gain of approximately HK$12 million from the disposal of a property.
“During the period, the group’s Hong Kong-based business retail network remained stable. Given that the consumer sentiment has deteriorated recently, the group carried out negotiations with landlords to stabilise the rental cost at reasonable levels. In view of the changes in consumers’ buying pattern, the group continued to open more cost-effective and diverse sales channels,” the company said in its stock exchange report.
Its group revenue from Mainland China was about HK$25.1 million, down 8.3 per cent year on year.