Bossini in the red as China, Hong Kong sales curtailed by Covid

Hong Kong-listed fashion retailer Bossini International expects the resumption of international travel to positively affect the group’s business this year.

This follows the release of its latest results which showed a loss of HK$132 million (US$16.82 million) attributable to shareholders.

The company changed its reporting period from June 30 to December 31 in order to align its financial year-end date with the controlling shareholder of the entity, making direct year-on-year comparisons unclear.

For the year to December 31 (six months only), sales from continuing operations reached HK$585.2 million (US$74.56 million) while gross profit was reported at $273 million ($34.78 million).

By segment, Hong Kong and Macau contributed $350 million, Mainland China $166 million, and Singapore $69 million. Same-store sales were down 7 per cent and same-store profit fell 10 per cent during the period

The company currently operates in 16 markets around the world and has 559 stores – 212 directly managed and 347 franchised.

The effects of the fifth wave of Covid on the retail markets of Mainland China and Hong Kong deeply affected the business activity and economic performance of the group, the company said, however it expects these economies to recover this year.

“As overall economic sentiment improves, consumption is also expected to rebound. We expect that after the resumption of normal travel in mainland China, domestic exports will grow favourably and the economy will gradually improve,” said the company.

The group will also reduce or “suspend” unnecessary back office expenses, control site selection and rental costs of sales points.

To attract new consumers, the company says it is committed to reinventing its brand image through the development of its Bossini X brand and expanding overseas.

You have 7 articles remaining. Unlock 15 free articles a month, it’s free.