Dickson Concepts, parent of Harvey Nichols, has reported a decline in profit for the first half due to weak consumer sentiment, a trend that management expects to continue in the near term.
The group’s net profit for the six months ended September 30 fell 40.1 per cent to HK$131.6 million (US$16.9 million), a decline that was flagged in its trading update last week. Turnover also dropped 24.4 per cent to HK$961.8 million.
Management cited the weak consumer sentiment across all markets, especially in Hong Kong.
Dickson Concepts expects the Hong Kong retail market to remain weak for the foreseeable future due to the slow recovery of the property market, a volatile stock market, and weak local consumer sentiment.
“Customers of all income levels will continue to travel and spend abroad, either in Shenzhen with better value and service or in Japan or Europe where luxury goods are cheaper due to weak currencies and tax rebates,” the group added.
The retailer also expects the Taiwan market to remain challenging, but remains optimistic about the longer-term outlook of the China market, with further expansion planned for the region.
“The group will continue to employ the most conservative approach to manage its retail network and will continue to control costs rigorously at all levels of operation,” said executive chairman Dickson Poon.
