Hongkong'S Casual Wear And Burger Dragon Sales Fell 6% Year-Round.

Hong Kong

Retailer Bossini

After the 2016 financial year results released on Wednesday, International Group Limited plunged 12.28% to HK $0.50 on Thursday.

Due to visiting core

The decline in the number of mainland tourists in Hong Kong and Macao and the strong Hong Kong dollar led to a decrease in mainland tourists' consumption in Hong Kong and Macao, coupled with the low consumption of local consumers and fierce competition in the market. Bossini's annual gross revenue in June 30th ended down 8.1% to HK $2 billion 319 million 300 thousand year-on-year.

Although the total retail area increased by 10.5% to 491 thousand square feet per year, sales per square foot dropped by 14.3% to HK $3600.

The same store sales recorded a 6% decline in the same year, while 1% in the 2015 fiscal year.

Almost all major markets have reversed the upward trend in the 2015 fiscal year. The Hong Kong and Macao market, which accounts for 70% of the group's business, has been flat down to 9% from the previous year, accounting for 14% of China's mainland market, from 6% to 5%, and 6% in Taiwan.

However, the group pointed out that the situation in all the regions in the second half of the fiscal year has been greatly improved. The overall sales decline of the same store has been narrowed to 1% from 12% in the first half of the year, which is strongly influenced by the warm winter climate. The group's competitor Giordano 0709.HK (Giordano International Ltd) also lost 1% in the same period (1-6 months 2016), while the total sales fell 7.5% to HK $2 billion 532 million.

Gross profit margin also shrank by 240 basis points to 47.7% because of reduced revenue, and 50.1% in fiscal 2015.

Operating profit and net profit both increased by 129.8% and HK $153.2% to HK $304 million 300 thousand and HK $292 million 100 thousand respectively from the proceeds of HK $267 million in the sale of properties and rents arrangements. Net income after excluding this income dropped by more than 78% to HK $25 million, and 2015 net annual profit was HK $115 million.

The board decided to replace the final dividend of HK $4.38 per share in fiscal year 2015 with a special final dividend of HK $1.22 per share.

As of June 30th, the group had 947 shops in 32 countries and regions, a net increase of 9 over the same period last year, of which 23 outlets were directly added to 238 outlets, and franchise stores were reduced from 14 to 667.

The total number of employees in the four main markets of Hong Kong, Macao, China, Taiwan and Singapore dropped from 100 to 2200.

Bossini said that there will be many unstable factors in the global economy in the future. The group will expand its market share as the main growth strategy and develop more and more functional products to cater for the market demand.

The group will also reduce costs by negotiating lower rents, simplifying store decoration and furniture facilities, and comprehensively implementing cost control.

As of June 30th, the group had net cash of HK $512 million, up 7.6% from HK $476 million in the same period last year.

So far, 0592.HK has fallen by 13.6% in 2016, while Giordano International (0709.HK) has risen by 16.6%.