Lee Man Handbag Profit Slump Is Affected By Economy

The global economy is sluggish, and the retail market in Hongkong is bleak.

Lee Man, a handbag supplier of sports brands such as Puma, recently released its earnings report, which also showed a sharp drop in profits.

But not just because of the slowdown.

It is reported that as of December 31, 2015, the 2015 fiscal year, the company

For HK $10 million 13 thousand, compared with the previous fiscal year, it plunged 70.01%, and the net profit in the 2014 fiscal year was HK $33 million 393 thousand.

For confrontation

Lee Man said it had spent $12 million at the end of 2015.

The plant is scheduled to be put into operation by the end of this year.

This decline is much higher than the 60% expected decline in the market.

The reason for this data is that the price war of manufacturers from Vietnam and Philippines has damaged the group's orders, and the cost of domestic labor has been increasing, making the group's cost more serious, the group said.

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Samsonite has been occupying headlines some time ago, but Samsonite has not yet completed its Tumi acquisition. Recently, it has issued a report on its 2015 annual performance and announced that it will adjust its business.

It is reported that Samsonite's net sales in the 2015 fiscal year, excluding the impact of the exchange rate, recorded an increase of 11.9%.

At that time, the group achieved double-digit growth for sixth consecutive years, with an increase of 3.5% to 2 billion 432 million 500 thousand dollars in net sales.

In the Chinese market, as the second largest single market recorded an increase of 11.1% to 252 million 700 thousand US dollars, however, the chairman of the group did not feel proud of this, so it was blind to expand. Instead, it said it would continue to maintain double-digit growth in the Chinese market by changing the sales channel strategy, strengthening the combination of non tourism products and expanding the coverage of the mass market.

On the other hand, Samsonite's core profit EBITDA adjusted for the whole year was $401 million 200 thousand, up 4.4% compared to the same period last year, and net profit rose 6.11% to 197 million 600 thousand US dollars annually.

The diluted earnings per share rose from $0.146 in the previous fiscal year to $0.154, so the group will plan to distribute cash dividends of $0.0659 per share.

In addition, the group said it would not buy any brand this year, nor did it plan to expand the luxury market.

Affected by this news, the stock price opened 3.08% higher on the day, up 4.05% during the early trading period, but then fell down to 0.19% at the close.

It is HK $25.85.