Hong Kong-listed fashion company Bossini has reported a 69 per cent increase in its loss for last year, despite a 5 per cent overall sales increase and a gross margin improvement from 47 per cent to 50 per cent.
The company reported HK$604 million (US$77.2 million) in revenue for the year ended December 31, with a loss attributable to owners of HK$223 million ($43.7 million).
In a summary of the accounts, chairman and executive director Jianguo Zhao said foot traffic in stores has continued to improve since the end of the pandemic and the return of tourists to Hong Kong and there were “positive signs of recovery in varying degrees” in its core markets of Mainland China, Hong Kong and Macau.
Sales in the latter two, which accounted for 65 per cent of revenue, were up 12 per cent year on year to HK$392 million ($76.7 million).
However, sales in Mainland China and Singapore were down 7 per cent and 16 per cent, impacted by weak consumption and the slow rebound in Mainland China.
As of the end of last year, the group had 519 stores across 16 countries. However, it ended the year with 49 fewer directly managed stores in Mainland China (now 122).
Bossini said it is focusing its resources on the repositioning of ‘Bossini.X’ in China, transitioning it from a brand of cost-effective everyday clothing to functional light sports clothing.
Bossini.X will become a sportswear line with professional cycling at its core, using professional sports technology materials, and developing sports outerwear and light outdoor apparel and footwear products that are easy to wear, clean up and pair with.
“[This] will attract a wider audience of energetic young consumers and serve people’s lifestyle to pursue health and recreation,” said Zhao. “We will strategically implement marketing campaigns and continue to sponsor the Chinese Cycling Team.
“In the future, the brand will also cooperate with, among others, cycling clubs and sports talents to enhance our connection with target consumers and diversify user experiences.”
Bossini will also continue to optimise sales channels and streamline inefficient stores while identifying appropriate locations for new stores, with a view to improving operational efficiency.
- Further reading: Chang Min Huei resigned from his role as Co-CEO of Bossini International last year.
