Bossini, the Hong Kong-listed fashion retailer, says it sees its new streetwear-style brand Bossini X as a key driver of its return to profit, especially in Mainland China where it is focusing on network expansion.
The company closed 284 stores during the past 18 months and this week reported a loss attributed to shareholders of US$43.43 million for the period after same-store sales fell 17 per cent. The 18-month reporting period reflects a change in financial year from June to December.
The store closures – which include the impact of the company’s exit from Taiwan – left it with a network of 698 owned or franchised stores as at December 31, across 24 markets. It trimmed its own network by about one in four.
Chairman Victor Herrero said in a results filing that the new Bossini X is being used in Mainland China. The first Singapore store to carry the new banner will open at Bugis Junction on March 25.
The brand reflects strong influences of streetwear and skate culture and includes footwear.
“Since Bossini X is set to have a fresh brand positioning, we are targeting whole new distribution channels, and the products will be substantially different from the brand Bossini.”
The development of the new brand will require investment over several years, he said, with the focus on product development and channel expansion potentially extending Bossini’s losses during that time.
While the company is building its new market position, it would continue to improve overall operating efficiency, said Herrero. Management roles will be refined and stores that record excessive losses will be shuttered.