Bossini Singapore sales slumped 23 per cent last year to S$9.3 million after the casual-apparel retailer shuttered two stores in the city.
The Hong Kong-headquartered company ended the year with 14 stores in Singapore and reported sales per square foot were down 6 per cent to $878.
Excluding the closures, same-store sales fell by 6 per cent, which was a marginal improvement on the 8 per cent decline of the previous year’s trading.
Bossini Singapore’s operating loss was $860,000 and its operating margin negative 9 per cent.
Across all markets, Bossini reported a 10 per cent decline in group revenue to HK$875 million (US$111.5 million) and a 5 per cent drop in same-store sales for the period. Gross profit fell 11 per cent and the loss attributable to shareholders ballooned from $12 million in the same period a year earlier to $26 million (US$3.3 million).
The company blamed an unseasonably warm winter and weak consumer sentiment in core markets for its growing loss.
Cautious outlook
Chairman Man Kuen Bess Tsin said Bossini International management is “cautiously optimistic” about the year ahead.
“However, in face of the complex and volatile global economy and geopolitics, the outlook is full of uncertainties. As an open economy, Hong Kong is particularly vulnerable to the impact of the global situation. At the same time, the local economy and consumption structure are also gradually changing.
Challenges and opportunities coexist. The group is fundamentally strong with a healthy financial position, which is capable of facing the potential challenges.”
Tsin said the export franchising business is a main focus of the group.
“We will further expand and optimise the distribution network, leveraging the economy of scale in market reach and profitability.”
The company will focus on introducing more new products and designs, with a focus on functionality at the core of its product strategy. Alongside the young adult segment, the company will develop more childrenswear lines to broaden its customer base and it will strengthen supply chain management to improve operational efficiencies.
