“Severe” competition in core markets and continuing weak consumer sentiment have shredded profits for apparel company Bossini International Holdings for its fiscal year to the end of June.
It was hit hardest at home in Hong Kong, where despite more positive business sentiment the its retail business continued to languish.
Strong growth continued, however, in the wider Asia-Pacific market in the face of widespread concerns about growing protectionism, a rapidly aging society and slow productivity growth, says the company, which saw its overall revenue and gross profit drop 13 and 8 per cent respectively.
Same-store sales declined 8 per cent for the year while there was a 5 per cent drop in gross profit.
The group’s revenue for the year was HK$2 billion (US$256 million) compared to $2.3 billion last year. Gross profit dropped to $1 billion from $1.1 billion, with the gross margin rising three points to 51 per cent.
Operating profit for the year was $10 million, EBITDA was $42 million (down from $356 million) and profit attributable to owners of the company was $5 million, compared to 4292 million the previous year.
At the end of June, the group had a presence in 30 countries and regions with a total of 940 stores (down from 947) comprising 284 (2016: 280) directly managed stores and 656 (667) franchised stores.
The Hong Kong and Macau market held its position as the major contributor to group revenue, with 40 stores, two down from the previous year.
Non-performing stores in Singapore and Taiwan were consolidated, the portfolio reducing to 18 (21 the previous year) and 63 (70) respectively.
Meanwhile, Bossini is celebrating its 30th anniversary with campaigns and events throughout this year, and launched its On-the-Go collection that targets the expanding market for travel and outdoor apparel.