Local Milan Station revenues plunge 81 pct in 2015

Luxury branded handbag store chain Milan Station Holdings Ltd. saw its revenues plunge by 80.8 per cent year-on-year to HK$15.6 million (US$1.94 million) in Macau for 2015, following its closure of retail stores in the territory, according to its filing with Hong Kong Stock Exchange on Wednesday.
‘The gaming industry and tourism industry in Macau shrunk in recent years, which greatly bombarded the Group’s business locally. During the year, the Group closed the retail stores in Macau, while the points of sale in exclusive clubhouses also performed unsatisfactorily,’ the retailer noted in the filing.
The company said it would adjust the product mix for its current sales points in local exclusive clubhouses as well as focusing on selling mid-priced brands in order to improve its revenues in the Special Administrative Region.
For last year, the company generated total revenues of HK$400 million, a 35 per cent year-on-year drop compared to the HK$616 million it made in 2014. Meanwhile, it posted a narrowed net loss of HK$48 million for the year, some 9 per cent lower than the HK$53 million loss suffered one year ago.
In addition to the sales drop in the city, Milan Station’s Hong Kong sales also fell 23.9 per cent year-on-year to HK$343.9 million. The company explained that the decline is due to the decreased number of Mainland China tourist visits to the HKSAR, weakening per capita consumption, and exchange rate fluctuations.