Apparel retailer Bossini has revealed a loss of HK$93.7 million (US$12 million) during the six months to December – more than triple the $25.7 million loss of the same period a year earlier.
Sales were down 20 percent from $875 million to $699 million ($89.9 million).
The bleak results were not unexpected, after the company filed a profit warning last week estimating a deficit ranging between $85 million and $105 million.
While 58 percent of Bossini’s revenue comes from Hong Kong and Macau, the group has a presence in 30 countries and regions around the world and 1086 stores in all, of which 287 are company-run the remainder franchised. China accounts for 23 percent, Taiwan 11 percent and Singapore 8 percent.
Overall sales per square foot fell 18 percent from $4000 to $3300 across the Bossini network. In Hong Kong and Macau retail sales were down by 29 percent as protests and geopolitical issues decimated the number of inbound mainland Chinese tourists. Sales on the mainland fell by just 3 percent.
Chairman Bess Tsin said in the interim results that Hong Kong is poised to recover from months of social activities with government stimulus plans long-awaited to ease social and economic hardship, “in spite of political turmoil that will likely continue weighing on domestic activity”.
“Disastrously, the novel coronavirus infection threat is heavily weighing on inbound tourism and local consumption sentiment is expected to last months, bringing another blow to the fragile economy. The business environment for retail trade has become even more difficult.”