Bossini International says it expects a significantly reduced loss for the June year, but the apparel company is clearly still facing challenges from the Covid pandemic.
While audited figures will not be released until the middle of next month, the Hong Kong-listed company has filed a profit warning with the stock exchange in which it warns of a loss of between HKD150 million and $160 million (US$19.3 million to $20.6 million).
That’s sharply down on last year’s loss of $368 million ($47.3 million). For the December half year, Bossini reported a deficit of $87 million ($11.2 million) after sales fell by 25 per cent, largely due to Covid-related restrictions on store trading hours and cross-border travel. In pre-Covid times, sales in Hong Kong and Macau accounted for about two-thirds of the company’s turnover.
Chairman Victor Herrero said the reduced loss for the June year was due mainly to lower asset impairments and reduced back-office expenses. The statement did not comment on sales for the full financial year to June 30.
Group revenue reached $468.7 million ($60.3 million) in the December half with sales down 38 per cent in Hong Kong and Macau, up by 2 per cent in Mainland China, and down 9 per cent in Singapore. This was the first complete trading period not to include Taiwan, which the company exited by the end of June last year.