Dickson Concepts, parent of upscale department store Harvey Nichols, has warned shareholders its profit will fall by around 54 per cent on last year’s result.
Citing a “significant decline” in the sale of fashion, accessories and beauty products in Hong Kong due to the city’s rolling Covid-19 crisis and social distancing, Dickson Concepts company secretary Stella Or Suk Ying said it expects to record a profit attributable to shareholders of about US$26.6 million compared with $58.8 million last year.
The company also booked an $8.9 million impairment charge for intangible assets and fixed assets related to the group’s retail operations in Hong Kong, as a direct result of the declining market conditions.
Profit from the sale of luxury goods is expected to decrease from $47.5 million last financial year to about $30.6 million for FY22.
The company also recorded a loss of about $3.8 million from its securities business, compared with a profit of $11.4 million last year.
Dickson Concepts will be releasing final, audited results next month, but the company has reassured shareholders that its balance sheet and net cash position “continue to be extremely strong”.