Bossini Boss Hong Kong clothing brand lions material annual net profit plummeted up to 85%

Hong Kong casual wear retailer Bossini Bossini International Holdings Limited (0592.HK) today announced the second profit warning in the fiscal year, saying that net profit attributable to adjusted shareholders will fall 75%-85% from the previous year. .

The group pointed out that the decrease in the number of passengers during the fiscal year ending June 30 and the strong Hong Kong dollar have led to a reduction in the consumption of tourists in Hong Kong and Macau, as well as sluggish consumer sentiment in multiple core markets, coupled with multiple factors such as unusually warm winter weather and fierce market competition. This resulted in a significant reduction in annual revenue and gross profit, which severely reduced profitability.

However, due to the gain of HK$267 million from the sale of properties and leaseback arrangements, net profit attributable to shareholders for the full year increased by 147% to 157% year-on-year. In March this year, the group announced that it will sell a Macau shop for HK$350 million and lease it back to the store. The lease period will be 3 years. The rent will be HK$1 million per month. After 3 years, the group has the right to renew the lease for three years.

Bossini Fort Lion International’s net profit fell 84% during the first half of the fiscal year ended December 31, 2015, from HK$877.4 million in the same period of the previous year to only HK$14.087 million. Earnings per share fell from 5.33 HK cents to 0.84. Hong Kong cents. The group cancelled the distribution of interim dividends.

The interim income decreased by 13.1% year-on-year to HK$1,146.62 million. The overall same-store sales dropped by 12%. Gross profit margin was 47.3%, which was a sharp drop of 310 basis points from 50.4% in the same period of the previous year.

Hong Kong and Macau market revenues fell by 12.2%, down from HK$921 million in the same period of the previous year to HK$809 million, and same-store sales fell by 14%. Revenue in Mainland China fell 9.1% to HK$159 million, while same-store sales fell 8%. Revenue in Taiwan and Singapore also fell by 21.2% and 19.3%.