Hong Kong-listed clothing retailer Moiselle International has warned shareholders it is likely to post a loss in the year to March 31.
A “significant” slump in Moiselle sales has been blamed on “weak consumer sentiment and sluggish retail consumption in Hong Kong” together with a decrease in spending by tourists from Mainland China.
“The board of directors wishes to inform shareholders and potential investors that the group expects to record a loss for the year ended March 31, 2016 as compared to the corresponding period in 2015,” the company said in a stock exchange disclosure.
Moiselle also referred to a “deterioration of operating environment in Mainland China” impacted on the significant decrease in turnover and operating margin.
Last December, the company revealed it was flying in loyal customers from the mainland to arrest falling sales, after posting a $31.9 million loss for the first half of the trading year.
Moiselle – which sells under the Moiselle, Mademoiselle, Coccinelle and French-influenced Germain brands – has recently shifted focus to a more tailor-made sales model in Hong Kong, targeting members of its VIP customer club, and has formed partnerships with several Mainland Chinese online shopping websites.