Bossini’s interim profit up 17 pct to HK$87.47 mil

By
Stephanie Lai

Clothing retailer Bossini International Holdings Ltd. has seen a 17 per cent year-on-year increase in its profit for the six months ended December 31 on the back of ‘record-high’ sales achieved in its core market of Hong Kong and Macau, the company announced in unaudited results submitted to the Hong Kong Stock Exchange after trading hours yesterday.
Bossini’s profit attributable to owners of the company rose by 17 per cent to HK$87.47 million for the interim period, while its group-wide sales revenue stood at HK$1.32 billion – a 3.69 per cent year-on-year increase compared to the HK$1.27 billion in the same period of 2013.
Basic earnings per share in the interim period were HK5.37 cents.
The clothing retailer said it has seen a same-store sales growth of 5 per cent in Hong Kong and Macau during the interim period, where sales ‘decelerated’ towards the end of last year under the influence of the pro-democracy movement of Occupy Central, the filing noted.
Bossini’s retail operation from its 41 stores in Hong Kong and Macau reached HK$921 million for the interim period, rising year-on-year by 3.68 per cent.
The company’s operations in the two Special Administrative Regions, which includes both retail and export franchising business, account for 70 per cent of its total revenue.
As of end-December, Bossini ran 949 stores worldwide. The clothing retailer’s overall same-store sales growth for the interim period was 4 per cent, a slower pace when compared to the 7 per cent growth seen in the same period in 2013.
Bossini’s operating profit for the interim period hit HK$104 million, with its operating margin edging up 1 percentage point to 8 per cent in the period, according to the filing.
Despite relatively stable market conditions in the Hong Kong and Macau segment, Bossini said in the filing that there was still some ‘ongoing uncertainty’ as the political issues of Hong Kong have not been resolved.
The clothing retailer also noted that the discounting policies in some markets and the growth of online retail platforms is putting pressure on margins. Bossini declared an interim dividend of HK2.70 cents per share, payable on or before April 8.
S.L.