Clothing retailer Crocodile Garments posted a net loss of HK$3.2 million (US$400,299) for the first half of its fiscal year ended January 31, compared to a profit of $15.5 million for the same period a year earlier.

This follows an operating loss in both its garment and property investment businesses.

For the six months, the company’s total revenue amounted to HK$135.8 million, a decrease of 19.3 per cent year-on-year. In particular, its garment and accessories business saw revenue tumble by 24 per cent to $108.2 million, resulting in a segmental loss of HK$18.8 million.

At the end of January, the company had 20 Crocodile shops and six under the Lacoste brand in Hong Kong and Macau.

Crocodile says its garment business in Hong Kong and Macau “hobbled under festering business conditions”. It says it will launch merchandise to fit market needs following the shift of Mainland Chinese tourists to other regions. Its business on the mainland was also “tough” during the period.

“The devaluation of renminbi and the fall in foreign exchange reserves have clobbered the market sentiment,” says the company.