The Loss Of High-End Men'S Clothing Market Has Increased To 200 Million In The First Half Of The Year And 19 In The Mainland.

Hongkong high-end

group

Holdings Limited yesterday released its first half performance report. According to the financial data, the income of the group fell by 11.5% in the first half of the year, and the core business deficit expanded to 200 million, which was 47 million 412 thousand in the same period last year.

After the release of the financial report, Li Bang's share price fell 6% to HK $0.62 per share. In the past three months, the company's share price has dropped by 14%, and its market capitalization is about 1 billion 30 million Hong Kong dollars.

The group's revenue in the first half of this year amounted to HK $890 million, down 11.5% from the same period last year.

Excluding exchange rate differences, it dropped by 8.7%, while same store sales fell 14.2%, gross margin was HK $606 million, down 14.7% compared with the same period last year.

By region, retail sales in Hongkong and Macao amounted to HK $258 million, as compared with the same period last year, while sales in the same stores decreased by 11.9%, as the number of passengers in mainland China decreased.

In mainland China

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Group retail sales revenue recorded HK $378 million, down 23.1% from the same period last year. Excluding exchange rate differences, revenue dropped by 19.5%.

Last year, the group closed 50 shops in the mainland of China due to the low consumption environment. The group said it closed 19 shops in poor performance in the first half of this year.

If the store is closed within the period, the same store sales will drop by 16.3%.

In addition, Taiwan's fashionable retail atmosphere continued to be weak, resulting in a decrease of 17.8% to HK $64 million 800 thousand in retail sales revenue compared with the same period last year, while sales in the same store dropped by 18.1%; in the first half of Europe, the income was HK $129 million 800 thousand, down 1.3% from a year earlier.

New customers in Europe have brought about growth in wholesale business, but this growth has been offset by a decrease in retail revenue and a decrease in authorized revenue resulting from closing stores.

A spokesman for the group said that in the first half of the year, the consumption environment in the Greater China region was depressed, the number of mainland visitors to Hongkong and Macao was reduced, and the negative impact of the tightening policy implemented by the Chinese government continued.

Over the past six months, the group has focused on coping with external challenges, including strategies to streamline group business in order to optimize the store network and supply chain.

The group said it would focus more on profitable shops.

Due to ongoing restructuring, including changes in Hongkong factories, the total number of employees currently owned by the group has decreased from 2738 in December 31, 2015 to 2665.

In addition, the group has substantially reduced the number of senior executives and consultants to save money.

Because of the general weakness of the Asian men's wear market, Li Bang has been troubled by its achievements in the past few years.

Last year, the company's net loss was HK $89 million (US $11 million 450 thousand), and its turnover decreased by 27% to HK $1 billion 900 million (US $244 million 510 thousand). Profits and revenues declined in 2013 and 2014.

In June of this year, Richard Cohen has resigned from the position of CEO, the latest management and corporate strategy change.

Jerempaul Egerton hobbins has become a successor, who has been the head of many companies in Hongkong Lifeng group, the parent company of Li bang.

At present, Li Bang operates six international men's wear brands, namely, Cerruti 1881, Altea, gieve& Hawkes, d 'urban, intermezzo and Kent & Curwen, among which its own brand Kent & Curwen, Kent 1881,

As of June 30, 2016, the number of shops in the group was 333, compared with 66 stores in 2014.