Crocodile falls into the red for fiscal H1

Clothing retailer Crocodile Garments Ltd posted a net loss of HK$3.2 million (US$400,299) for the first half of its fiscal year ended January 31, compared to a profit of HK$15.5 million one year ago, due to operating loss registered in both -the company’s garment business and property investment letting business.
For the six months, the company’s total revenue amounted to HK$135.8 million, a decrease of 19.3 per cent year-on-year from HK$168 million for the same period of last year.
In particular, the company experienced a tumble in its retail of garment and related accessories, from which revenue fell by 24 per cent year-on-year to HK$108.2 million, resulting in a segmental loss of HK$18.8 million.
Moreover, its property investment business registered a revaluation loss of HK$149,000, as compared to gains of HK$41.6 million one year ago, despite the segment recording a stable rental income of HK$27.6 million for the six months.
The company was operating 20 shops under the brand Crocodile and 6 under the brand of Lacoste in Hong Kong and Macau at the end of January.
Noting its garment operations in the two SARs ‘hobbled under festering business conditions’ in the reporting period, it claimed that it will ‘keep a close watch and launch popular merchandise to fit market needs given the shifting of proportion of inbound tourists from the Mainland to other regions.
Apart from the two SARs, the retailer remarked that its business operation in the Mainland was ‘tough’ during the same period as well.
‘The devaluation of Renminbi and the fall in foreign exchange reserves have clobbered the market sentiment,’ the company wrote. ‘The recent tightening of monetary policies for deleveraging has hampered the people’s willingness to spend as having their liquidity reduced.’