Hong Kong'S Clothing Brand Is In Trouble, And The Loss Is 28 Million.

More and more data show that Hongkong's apparel retailing industry is facing a new winter.

Hongkong garment retailer Bossini announced that the net profit for the second half of the fiscal year was released to HK $23 million to HK $28 million in the 6 months ended December 31, 2018, a net loss of HK $12 million in the same period last year, and a loss of earnings per share.

The Group believes that losses are mainly affected by the many core markets run by the group, the unusually warm winter climate and the depressed local consumption.

The performance of burshlung in recent years has been poor. The annual profit of the group has been declining for four consecutive years. From 2014 to 2017, it recorded HK $127 million, HK $115 million, HK $25 million and HK $4 million 886 thousand respectively.

The group has issued a profit warning for four consecutive years since 2016.

In 2017, the revenue of burglung in Hongkong and Macao declined by 14%, while the revenue of the mainland market, which has been the engine of growth, also declined by 6%.

According to the performance report of burlung, as of last June 30th, according to the regional division, although the same store sales in mainland China and Taiwan rose by 6% and 3% respectively, the same store sales in Hong Kong and Macao fell by 2%, Singapore's revenue decreased by 9%, while the same store sales fell 5%, and their total revenue fell 3% to about 2 billion Hong Kong dollars.

In 1987, burglung opened its first store in Hongkong. In 1993, burglung International Group Limited was officially listed on the stock exchange of Hongkong. It became the largest clothing retail group in Hong Kong and Macao.

Since the opening of China's mainland free trade in 2000s, burshlung has entered a period of rapid growth, and its market value once exceeded 2 billion 500 million in 2005.

But it has not lasted for a long time. Due to the large fluctuation of the economic environment in recent years, the attractiveness of mainland tourists to visit Hong Kong has declined. The fast fashion of ZARA and H&M and the fierce impact of the electricity supplier have all brought a negative impact on the retail market of Hongkong as a whole.

It is not surprising that the rise and fall of burllung, one of the three giants of Hongkong's casual wear, is closely related to Hongkong's retail industry.

According to the latest official figures, retail sales in Hongkong recorded the slowest growth in 17 months last November, mainly due to the constant fluctuations in the geo economy, which has made consumers more cautious.

In fact, Giordano and Baleno, also known as the three giants, are not so good now.

The Baleno Kingdom Limited of Shanghai was sold at a low price of 250 million yuan in 2016 by its parent company Hongkong de Yongjia group.

Giordano also sharply reduced 81 stores in 2015, and its sub brand EULA also announced that it had stopped operating.

Today, Giordano has almost disappeared in the mainstream business circle of the first and second tier cities.

Giordano International announced earlier that in the 3 months ended September 30th, group sales fell 5.2% to HK $1 billion 176 million, and fell by 6.9% at fixed exchange rates, down 2.8% from sales.

The group said the decline in performance was mainly affected by the setback of consumer confidence in the Asia Pacific region since June.

Also affected by the weakness of the retail industry is the cosmetics retail group Sasa international and jewellery group Zhou Dafu.

Due to currency exchange rate fluctuations and consumer confidence, overall sales of Sasa international fell 2.2% to HK $2 billion 186 million in the third quarter, of which Hong Kong and Macao fell 2.8% to HK $1 billion 838 million, and the single paction volume decreased 2.6% to HK $358, while Zhou Dafu recorded the first decline in the same quarter sales in the two fiscal year.

In order to accelerate the recovery of performance, the fort lion planned to increase the size selection of children's wear products to further expand the children's wear market.

Some analysts pointed out that in the current complex and changeable environment, how to find new growth points is the key to keep traditional clothing brands such as burglung dragon in the increasingly competitive market.

As of Wednesday's close, 00592.HKG shares plunged 8.475% to HK $0.27, a 40% decline since 2018, with a current market value of HK $443 million.