Hong Kong-listed fashion group Moiselle International has strengthened its margins but still posted a loss in the last half year.

But Moiselle Singapore sales crashed by 22 per cent to about HK$4.14 million, (just S$761,000). The group has retained seven stores there.

Moiselle has seven stores in the city state including namesake stores at Paragon and The Shoppes at Marina Bay Sands. Its other brands include Coccinelle, Germain Paris and Sequoia.

The parent company reported a loss of about US$4.5 million for the half-year, which was 10 per cent worse than for the same period last year, but its gross profit margin improved from 76 per cent to 79 per cent.

Moiselle says it was hit hard by the harsh operating environment as it derived about 55 per cent of its revenue from Hong Kong and 18 per cent from China. Its retail sales in Hong Kong were affected by the fall in the number of mainland tourists as well as exorbitant rents. In China, the economic slowdown dampened the consumer sentiment. The remaining 27 per cent of the revenue was made up by sales in Macau, Singapore and Taiwan.

To cope with the difficult market, the group rationalised its retail network, introduced stringent cost-control measures, continued cost-effective sales and marketing initiatives such as adopting an online-to-offline business model, introduced exclusive services for high-end customers with a VIP club, and introduced products of a wider price range to broaden its customer base and cater for young Hong Kong customers.

Meanwhile, the group stepped up its multi-brand strategy by launching fashionable loungewear under a new brand, promoted in the group’s two fashion shows in Hong Kong and Beijing.

At the end of September, the group had 84 stores and counters in China (first- and second-tier cities), Hong Kong, Macau, Singapore and Taiwan, down from 90 at the end of March.