Li Bang Menswear Group Plunged Last Year

According to recent news, the sales of Li Bang menswear retail group declined by 27% in 2015 due to the sharp reduction in market sales. The group is in a state of loss and the situation is not optimistic.

As a result of the downturn in the market led to a sharp drop in sales, restructuring and a one-time cost and depreciation of the renminbi, Hongkong

Its high-end men's clothing retail group Trinity Ltd. 0891.HK Holdings Limited (0891.HK) changed from profit to loss in the fiscal year.

The group said it will continue to boost the sales of global brands with the help of the middle class's overseas tourism consumption.

The annual profit fell by 27% to HK $1 billion 914 million, while same store sales plunged by 26%, which means that the decline in the second half of the year was further larger than that in the first half of the year, mainly due to the weak consumption in the Greater China region.

Among the biggest markets, mainland China's revenue plunged 29.6% to HK $906 million 600 thousand, while Hongkong and Macao also fell 30.8% to HK $576 million 800 thousand, while British income decreased by 10.2% to HK $149 million 300 thousand per annualized year. Taiwan recorded a 24.4% decline.

By the end of 2015, the total number of retail outlets in the group decreased from 399 to 349 in the previous year.

The weakness of Li Bang actually shows that China's economic slowdown and the heavy blow of anti-corruption on the luxury goods market, especially the men's wear market, make the men's market a serious surplus.

Germany's Hugo Boss AG (BOSSn.DE) Hugo Bos group said in its annual report earlier this month that it will close 20% of its Chinese stores and cut its price by 20%, and plans to further reduce its price by 10%.

Hugo Boss AG Hugo Bos, men's clothing business accounted for the same large Ralph Lauren Corp. (NYSE:RL) Ralph Lauren group (about 2/3, Hugo Boss AG Hugo Bos super 9) in early February also vigilant profit situation, the stock price on the same day the biggest single day decline in 5 years, and clothing accounted for 5 of the total of the Hugo.

In the first half of the year, the provision of inventory was adjusted, and the gross profit margin fell by 170 basis points to 72.4% over the previous 74.1%, and still reached the target of more than 70%.

Thanks to cleaning up inventories and reducing purchases, the total inventory value decreased by 3.4% over the previous year, but the stock turnover days increased to 343 days from the 343 day of the previous year.

The net loss in fiscal year 2015 amounted to HK $88 million 518 thousand, compared with HK $161 million in the previous year.

The group pointed out that the restructuring resulted in a one-time expenditure of HK $59 million 600 thousand for the whole year. The depreciation of the RMB also resulted in a HK $19 million 300 thousand exchange loss.

The group emphasizes that core profit EBTIDA maintains positive numbers.

The board decided not to issue a final dividend.

Richard Samuel Cohen, the chief executive of leben, expects the current fiscal year 2016 to be grim. In the medium term, the market will continue to fluctuate. He said the group will continue to restructure and streamline its own production and supply chain, and will also strive to open up the global market and find opportunities for expansion in Europe, the United States and the Middle East.

Wholly owned by Li Bang

Men's brands Gieves&Hawkes and Kent&Curwen, and Italy menswear brand Cerruti 1881.

Zhou Yishou 0891.HK reported HK $0.96, which has fallen 13.5% since 2016.

Despite its benefit from its brand Kent&Curwen in September last year, it won the 5 year exclusive partnership agreement of retired football star David Beckham David Beckham, which surged 61.5%, but 0891.HK still recorded a 31.9% decline in the past 12 months.

Authorized by Global Brands Group Holding Ltd. Li Biao brand Limited (0787.HK) and David Beckham David Beckham and its business partner Simon Fuller controlled entity company, the new joint venture brand is authorized to use concessionary property rights for the promotion, design, manufacture and distribution of some of its brand name products, which means that Li Bang can sell exclusive products and exclusive distribution of other David Beckham products in retail stores, and exclusive distribution of products in wholesale, electronic commerce or other ways.

Li brand and Li Bang are under the banner of Hongkong Feng Shi group.