Milan Station’s yearly loss expands

Luxury-branded handbag chain store Milan Station Holdings Ltd saw its net losses expand for the year of 2016, while the company’s sales in the MSAR plunged by nearly half from 2015, shows the company’s filing with the Hong Kong Stock Exchange last week.
In 2016, the company’s revenue derived from the Macau market amounted to HK$8.6 million (US$1.07 million), a slump of 44.9 per cent year-on-year from HK$15.6 million one year earlier.
The company currently only operates points of sale in exclusive local clubhouses. It explained in the filing that the performance of these points of sale was “unsatisfactory”.
‘The gambling industry and tourism industry in Macau has shrunk in recent years, which greatly bombarded the Group’s business locally,’ it claimed.
Meanwhile, the company’s total revenue for the year reached HK$318.8 million, falling by 20.2 per cent year-on-year from HK$399.6 million in 2015.
Of the total, 92.1 per cent was generated from the sale of handbags, which amounted to HK$293.7 million in the year, a decrease of 25.3 per cent year-on-year. Nevertheless, the company’s sales of other products jumped by 280.3 per cent year-on-year to HK$25.1 million, compared to HK$6.6 million in 2015.
In addition to sales declines in the MSAR, the company also saw its revenue in both Hong Kong and Mainland China decrease, down by 15.2 per cent and 52.7 per cent, amounting to HK$291.6 million and HK$18.6 million, respectively.
‘The international economies uncertainty will persist and make the coming years challenging. Also with social and political issues and intensive competition, the retail market in Hong Kong will remain stagnant,’ the firm forecast in the filing.
‘The consistent pressure on Renminbi will continue and affect the purchasing power of the Chinese consumers, and consequently exacerbate the downtrend in Mainland Chinese tourists’ visits to Hong Kong,’ it added.