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Tag: Bossini

  • Bossini warns Hong Kong landlords over Rents

    Bossini warns Hong Kong landlords over Rents

    Casual apparel retailer Bossini says it will close more stores in Hong Kong as many landlords remain unwilling to convert leases to turnover-based rents.

    The company has reported a loss of US$11.2 million for the December half after sales fell 25 percent.

    With Hong Kong and Macau accounting for 66 percent of sales in 2019, cross-border travel restrictions to both territories meant that share fell to 55 percent last year. Revenue in Hong Kong and Macau fell by 38 percent year on year.

    “The overall shop rental expenses remained at a very unreasonable level with several landlords still unwilling to provide rent concessions, despite some landlords had already switched to pure turnover-rent arrangement,” said chairman Victor Herrero in a stock exchange filing.

    “This will inevitably involve the closure of certain loss-making retail shops… We will continue to renegotiate with landlords to seek rent relief and reduction. Where landlords are reluctant to respond reasonably to our requests, we will close those shops.”

    Group revenue reached $60.3 million. Outside Hong Kong and Macau, sales rose by 2 per cent in Mainland China, but fell 9 per cent in Singapore. This was the first complete trading period not to include Taiwan, which the company exited by the end of last June.

    Looking forward, the company expects the pandemic to continue to impact its business.

    “The group’s performance is expected to remain under significant pressure for the remaining financial year with travel restrictions and social-distancing measures still largely in place,” said Herrero.

    But the company is upbeat about its ability to withstand the ongoing pressure caused by the pandemic.

    “Overall, the group is formulating and implementing strategies ranging from brand re-positioning, product segmentation and pricing, distribution channels, production and supply chain management, marketing and promotion to IT infrastructure,” he said.

    “We believe all of these would collaboratively equip us with a solid foundation and pave the way for our expansion and tap into market opportunities in the mid- to long-term.”

  • Bossini tells landlords it close stores if rents not reduced

    Bossini tells landlords it close stores if rents not reduced

    Local clothing chain Bossini said it has suffered a loss of more than HK$367 million in its last financial year and warned that it may have to close some of its stores in the city unless landlords agree to provide more “reasonable” rent relief and reduction.

    The clothing chain’s reported loss is almost three times more than the loss it incurred in the previous fiscal year.

    It said the economy of its core markets, such as Hong Kong, had been hampered by the Sino-US trade tensions, social unrest last year, and the ongoing Covid-19 pandemic which affected local and tourist consumption in the SAR.

    It also laid the blame on the fact that several landlords have been unwilling to reduce rents despite the harsh business environment.

    “Social distancing, lockdowns, curfews and changing quarantine requirements have created immense challenges for our retail operations,” the company said on its outlook.

    “As the overall shop rental expenses remain at a very unreasonable level, we are renegotiating with landlords across all our core markets, particularly in Hong Kong and Macau, to seek rent relief and reduction.”

    “Where landlords are reluctant to respond reasonably to our requests, we will go ahead and close those shops.”

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  • Bossini results in freefall as Covid-19 hits the entire fashion industry

    Bossini results in freefall as Covid-19 hits the entire fashion industry

    Covid-19 has increased Hong Kong-listed apparel group Bossini’s loss attributable to shareholders by 174 percent from last year to US$48.85 million.

    Sales for the 12 months to June 30 hit $141 million, down by 27 percent, and gross margin fell to 49 percent, from 52 percent last year.

    “Since 2019 the economic environment of the core markets in which the group operates, comprising Hong Kong and Macau, Mainland China and Singapore, has been adversely affected by the Sino-US trade tensions, the local social incidents in Hong Kong and the global outbreak of Covid-19,” the business said.

    “Social distancing, lockdowns, curfews, and changing quarantines have created immense challenges for our retail operations. Moreover, major banks continue to tighten our credit facilities, and it is difficult to predict whether additional measures will  be implemented by the banking sector in the future.”

    In response, the business is working to reduce its costs by “streamlining business operations”, and reviewing inventory levels and its store portfolio in an effort to exit loss-making sectors. Bossini said its rental expenses are “very unreasonable”, that it will focus on renegotiating leases, and that should landlords be reluctant to drop rent it will close stores.

    Bossini’s new owner, Viva China Holdings, said it expects to continue facing headwinds in the short-term and that there isn’t enough information for it to form an optimistic opinion for the foreseeable future.

  • Apparel retailer Bossini reveals customer data hack

    Apparel retailer Bossini reveals customer data hack

    Hong Kong-based apparel retailer Bossini says its database of loyalty program members and online customers was hacked earlier this month.

    The company says the information accessed without authorization on or around June 3 included customers’ names, addresses, phone numbers, email addresses, gender, age range and month of birth.

    “The leaked files do not contain any information on the identification card numbers and credit card numbers or payment information of these customers,” the company said in a statement released under the name of its chairman Bess Tsin.

    “Upon discovery, we took immediate action to contain the event and commenced a detailed investigation with the assistance of a leading cybersecurity firm. With the steps taken, we believe that the data breach situation has been contained.”

    Customers with concerns about the breach have been invited to email Bossini at the address [email protected] for further information.

    Tsin said that for customers to complete a purchase on its website they are directed to a secure third-party payment gateway. No credit card information is stored by Bossini during any transactions either instore or online.

    Bossini has reported the data breach to Hong Kong police.

    “We will continue to monitor the security of our systems and take further steps as necessary and as of now, to the best of our knowledge and that of our cyber security adviser, we have substantially secured the company’s systems,” said Tsin.

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  • Struggling Bossini issues another turnover and profit warning

    Struggling Bossini issues another turnover and profit warning

    Troubled apparel retailer Bossini has issued another profit warning after reviewing 11 months of its trading year.

    In a filing with the Hong Kong stock exchange, Bossini says it expects that the loss attributable to shareholders for the period to May 31 was between US$38 million and $42 million.

    The company attributed the loss to the adverse impact of social unrest and the subsequent arrival of the Covid-19 pandemic along with impairment provisions on property, plant and equipment

    Bossini reported a loss of $12 million during the six months to December – more than triple the $3.3 million loss of the same period a year earlier. Sales were down 20 percent to $90 million.

    The company is subject to a takeover offer from a Chinese company controlled by retired Chinese athlete Li Ning, who plans to expand the business in Mainland China.

    A venture called Viva China will buy 1.09 billion shares in Bossini, paying just $6 million for 66.6 percent of Bossini’s issued capital, effectively buying out the family interests of Bossini’s founder Law Ting-pong.

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  • Li Ning founder bids to acquire Bossini

    Li Ning founder bids to acquire Bossini

    A Chinese company controlled by Li Ning plans to buy a controlling stake in Hong Kong-listed apparel group Bossini, with plans to expand the business in Mainland China.

    A venture called Viva China will buy 1.09 billion shares in Bossini, paying just HK$46.6 million (US$6 million) for 66.6 percent of Bossini’s issued capital, effectively buying out the family interests of Bossini’s founder Law Ting-pong. After that deal is concluded, the buyer is required under Hong Kong stock exchange rules to offer to buy out the remaining shareholders, which would lead to the company’s privatization. However, in a stock-exchange filing, Viva China said it intends to maintain the company’s listing.

    The offer for Bossini’s shares represents a discount of 71 percent to the 14.8 cents Bossini shares last traded at and an 87.39-per-cent discount to its December net asset value of $560.2 million. The offer reflects “the deteriorating financial performance of Bossini Group and its widening loss in the latest financial years (2018 net loss of $29 million; 2019 net loss of $139.1 million),” according to the filing. A further loss is expected in the current trading year, with the company recording a $93 million deficit in the first half.

    Viva China Group is principally engaged in sports competition, event production and facilities

    management, esports, sports-talent management and last year expanded into the development, design, and sale of sports, health, and leisure consumables. As part of that plan, the company has been actively seeking investment in an apparel brand.

    Viva currently owns about 13.42 percent of Li Ning Company, the sports apparel retail brand established by its namesake, a former Chinese Olympiad. Li Ning facilitated an introduction between Bossini and Viva China and is effectively underwriting the purchase through companies he controls.

    Keystar, the other partner in the entity bidding for Bossini’s shares, is owned by Boso Law, a nephew of the Bossini founder, who is CEO of Laws Fashion Group.

    Viva believes there is strong potential to expand Bossini’s existing network of 180 stores in Mainland China, now largely based in Guangdong province, across the county.

    “The Viva China board will work together with the existing management of the Bossini Group to

    rejuvenate the brand of Bossini with a younger image to appeal to younger generation in the PRC. It will also renovate the stores of Bossini to enhance its layout so as to create a more immersive retail experience to the customers and capture the minds of the young generation,” the company said in the filing.

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  • Bossini Taiwan stores will be closed before summmer

    Bossini Taiwan stores will be closed before summmer

    Hong Kong-headquartered apparel chain Bossini is to close down its Taiwan business, expecting to close all 51 stores by July 31.

    Chairman Bess Tsin said Bossini Taiwan will start discussions with landlords over terms for exiting leases early and all employees made redundant will be compensated as required by local laws.

    She expects the closure to result in one-off costs of HK$20 million (US$2.57 million), subject to the outcome of landlord negotiations.

    Bossini Taiwan was launched in 1992, an early foray into the Greater China market for the brand.

    “The decision to withdraw from the Taiwan market is a difficult one for the company,” said Tsin. “However, due to the continuing sluggish consumer market in Taiwan over the last two decades, Bossini Taiwan has been loss-making since the 2005/06 financial year.”

    Tsin said given the current challenging market conditions in Hong Kong and Mainland China, the board resolved yesterday that it was in the best interests of the company and its shareholders to cease the Taiwan operations and focus its resources on its other major markets.

    Last month, Bossini revealed a loss of HK$93.7 million (US$12 million) during the six months to December – more than triple the $25.7 million loss of the same period a year earlier. Sales were down 20 percent to $699 million ($89.9 million).

    “The company and the board would like to express their greatest gratitude to the management and staff of the Taiwan division for their unwavering support to the group in the past years,” she said in a stock exchange filing.

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  • Bossini profit down as protests hit Hong Kong sales

    Bossini profit down as protests hit Hong Kong sales

    Apparel retailer Bossini has revealed a loss of HK$93.7 million (US$12 million) during the six months to December – more than triple the $25.7 million loss of the same period a year earlier.

    Sales were down 20 percent from $875 million to $699 million ($89.9 million).

    The bleak results were not unexpected, after the company filed a profit warning last week estimating a deficit ranging between $85 million and $105 million.

    While 58 percent of Bossini’s revenue comes from Hong Kong and Macau, the group has a presence in 30 countries and regions around the world and 1086 stores in all, of which 287 are company-run the remainder franchised. China accounts for 23 percent, Taiwan 11 percent and Singapore 8 percent.

    Overall sales per square foot fell 18 percent from $4000 to $3300 across the Bossini network. In Hong Kong and Macau retail sales were down by 29 percent as protests and geopolitical issues decimated the number of inbound mainland Chinese tourists. Sales on the mainland fell by just 3 percent.

    Chairman Bess Tsin said in the interim results that Hong Kong is poised to recover from months of social activities with government stimulus plans long-awaited to ease social and economic hardship, “in spite of political turmoil that will likely continue weighing on domestic activity”.

    “Disastrously, the novel coronavirus infection threat is heavily weighing on inbound tourism and local consumption sentiment is expected to last months, bringing another blow to the fragile economy. The business environment for retail trade has become even more difficult.”

  • Bossini half-year loss could quadruple

    Bossini half-year loss could quadruple

    A week out from releasing its half-year results, apparel retailer Bossini has warned shareholders of a bleak performance.

    Chairman Bess Tsin said in a stock-exchange filing that the group expects to record a loss attributable to shareholders ranging between HK$85 million and $105 million for the six months ended December 31.

    That could be as much as four times the loss of $26 million it recorded in the same six months a year earlier.

    Tsin said the loss was “mainly due to a sharp decline in inbound visitors in Hong Kong, the Mainland China-US trade disputes, weakened consumer sentiment and the unseasonably warm winter weather in several core markets where the group operates”.

    Bossini is scheduled to release its half-year results in “mid-February”.

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  • Bossini issues revised loss warning

    Bossini issues revised loss warning

    Lifestyle apparel brand Bossini has warned shareholders its loss this year will blow out to about $139 million, citing Hong Kong’s rolling protests.

    That figure is higher than the $124 million it projected at the end of May after reviewing management accounts showing a loss of $92 million for the 10 months to April. It represents a five-fold increase from last year’s loss of $29 million.

    In May, Bossini chairwoman Bess Tsin said the final figure would depend on trading in May and June and yesterday she issued a “supplemental announcement” to the earlier profit warning.

    “The annual results recorded was slightly off track from what had been expected in the announcement because of the increase in the loss derived from the Hong Kong and Macau segment as a result of a further weakening in consumer sentiment and the adversity in business environment resulting from the social unrest in Hong Kong in the last month of this financial year.”

    The final result will be released within the next fortnight after an audit is completed.

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  • Bossini loss likely to be four times that of last year

    Bossini loss likely to be four times that of last year

    Bossini has issued a profit warning saying unseasonal weather and weak consumer sentiment is impacting sales.

    In a stock exchange filing in Hong Kong, where the company is listed, Bossini chairwoman Bess Tsin said unaudited consolidated management accounts of the group for the 10 months to April 30 indicate a loss attributable to shareholders of about HK$92 million (US$11.7 million) for the period.

    “Based on the management accounts and the information currently available, the group expects that the loss attributable to owners for the year ending June 30 would be higher than that shown in the management accounts by about 35 per cent.”

    That would equate to about $124 million, more than four times last year’s loss of $29 million.

    She said the final figure would depend on the trading results for May and June.

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  • Bossini Singapore opens new store concept at Jewel Changi

    Bossini Singapore opens new store concept at Jewel Changi

    Bossini Singapore opened a new store concept at Jewel Changi today. The fashion retailer says shoppers can look forward to an enhanced visual and shopping experience in the new store.

    The interior is fitted out with materials that resemble nature while walls are fitted with LED TV screens and an interactive Lego panel for further engagement.

    The entrance is designed with three-dimensional LED lights for an inviting shop-front.

    The store will carry athleisure wear, windbreakers, jogger pants and quick-dry tops and regularly changing collaborative capsules. Past such collaborations include Disney characters featuring on an extensive and fun range of t-shirts, jackets, dresses and bottoms for both adults and kids.

    Local souvenirs for tourists are also in the pipeline.

    Bossini Singapore opens new store concept at Jewel Changi

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  • Warm weather blamed for worsening Bossini International loss

    Warm weather blamed for worsening Bossini International loss

    An unseasonably warm winter and weak consumer sentiment in core markets has been blamed for a more than doubling of losses for Bossini International in the six months to December. The casual-fashion retailer reported a 10 per cent decline in group revenue to HK$875 million (US$111.5 million) and a 5 per cent drop in same-store sales for the period. Gross profit fell 11 per cent and the loss attributable to shareholders ballooned from $12 million in the same period a year earlier to $26 million (US$3.3 million).

    Operating profit in the key Hong Kong and Macau market, where Bossini has 39 stores, improved, despite a 5 per cent decline in same-store sales.

    In Singapore, sales plummeted 23 per cent due to store closures. Same-store sales there fell by 6 per cent, in Taiwan by 7 per cent and in Mainland China by 3 per cent. Group-wide same-store sales fell by 5 per cent, worse than the 2 per cent of the December 2017 half.

    As at the end of last year, Bossini International had a total net retail floor area for directly managed stores of 362,000sqft, about 4000sqft less than a year earlier, across 295 stores, (11 more than a year earlier). It opened 114 franchised stores in markets outside Hong Kong and Macau, taking the total franchised network to 768.

    Hong Kong challenge

    Bossini chairman Man Kuen Bess Tsin said the significant decline in retail sales growth in Hong Kong since July and the negative impact of the devaluation of the Renminbi had impacted on the company’s sales in its home market, which accounts for 66 per cent of group revenue.

    “The Hong Kong retail market presented a cautious optimism if not a mixed picture. Strong inbound tourism, especially from Mainland China, was recorded in Hong Kong. Nevertheless, the consumption per capita started to drop in the third quarter, despite the annually increasing numbers of tourist arrivals in Hong Kong.”

    The group’s total net retail floor area in Hong Kong and Macau reduced from 125,800sqft to 121,600sqft, a decrease of 3 per cent, while sales per square foot slipped 5 per cent to $7200 (from $7600). Operating profit in Hong Kong and Macau was $17 million, up from $12 million for an operating margin of 3 per cent (compared with 2 per cent a year earlier).

    Mainland China revenue decreased 2 per cent.

    Bossini Singapore posted an operating loss of 5 million, 20 per cent more than the comparable period and the operating margin was negative 9 per cent.

    Cautious outlook

    Tsin said Bossini International management is “cautiously optimistic” about the year ahead.

    “However, in face of the complex and volatile global economy and geopolitics, the outlook is full of uncertainties. As an open economy, Hong Kong is particularly vulnerable to the impact of the global situation. At the same time, the local economy and consumption structure are also gradually changing.

    Challenges and opportunities coexist. The group is fundamentally strong with a healthy financial position, which is capable of facing the potential challenges.”

    Tsin said the export franchising business is a main focus of the group.

    “We will further expand and optimise the distribution network, leveraging the economy of scale in market reach and profitability.”

    The company will focus on introducing more new products and designs, with a focus on functionality at the core of its product strategy. Alongside the young adult segment, the company will develop more childrenswear lines to broaden its customer base and it will strengthen supply chain management to improve operational efficiencies.

  • Bossini losses set to double

    Bossini losses set to double

    Bossini International has warned the group is expected to record a loss attributable to owners of between HK$23 million and $28 million (US$2.93 million to $3.6 million) for the six months to December – roughly double the loss of the same period last year. Chairman Bess Tsin said in a stock exchange filing that the loss was largely due to “unseasonal warm winter weather and weak consumer sentiment in several core markets” where the group operates.

    The company said the estimate was based on a preliminary assessment of the company’s accounts for the period and details would be confirmed in late February, when the company announces its annual results.

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  • Forex storm hurt Bossini further

    Forex storm hurt Bossini further

    Foreign exchange losses hobbled the recovery of Hong Kong-headquartered fast-fashion label Bossini.

    In full-year results just released, Bossini reported a 3 per cent decline in total revenue to HK$1.958 billion (US$249.6 million), largely due to a decrease in sales from the export franchising business. However gross margin rose rose two percentage points to 53 per cent.

    While same-store profit rose by 1 per cent, the company reported a loss attributable to shareholders of $29 million, compared with a profit of $5 million last year.

    Mainland China and Taiwan were standout same-store sales performers, recording 6 per cent and 3 per cent growth for the year respectively. Bossini’s export franchising business added three new markets during the year: Laos, the Czech Republic and Rwanda, taking its footprint to 25 countries.

    In a stock exchange filing, Bossini said its operating profits from its retail businesses in Hong Kong, Macau, Mainland China, Taiwan and Singapore all improved. Hong Kong and Macau account for about 50 per cent of the brand’s sales.

    “Nevertheless, the group’s profit attributable to owners posted a decline mainly due to the foreign exchange fluctuation arising from Renminbi,” wrote chairman Man Kuen Bess Tsin.

    “The decrease in the profit derived from the export franchising business, as a result of the continuously weak and competitive apparel retailing environment, was another reason for the drop.”

    Same-store sales by market

    Same-store sales in Hong Kong and Macau slipped 2 per cent and in Singapore by 5 per cent – well below the respective falls of 9 per cent and 11 per cent the previous year.

    Same-store sales in Mainland China and Taiwan grew by 6 per cent and 3 per cent, a turnaround from drops of 5 per cent and 7 per cent last year.

    Company-wide same-store sales fell 1 per cent compared with an 8 per cent drop last year.

    As at June 30, Bossini had 938 stores internationally, 284 directly managed and 654 franchised. Its Hong Kong and Macau network held steady at 40.

    During the year, it opened one new store in Taiwan, taking its network there to 64, and it closed two in Singapore, for a net 16.

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