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Tag: earnings

  • Bukalapak Extends Positive EBITDA Streak in Q2 Despite First-Half Net Loss

    Bukalapak Extends Positive EBITDA Streak in Q2 Despite First-Half Net Loss

    Bukalapak extended its run of positive adjusted EBITDA through the second quarter, maintaining operating profitability across core business units despite reporting a net loss for the first half.

    The Indonesian tech group balanced tighter operational spending across its marketplace and merchant network against bottom-line pressures that kept first-half net earnings in negative territory.

    Operating Discipline Across Units

    Second-quarter performance showed steady cost control across business segments. Management kept overhead tight while protecting revenue from offline-to-online merchant partners and specialized online commerce categories.

    Operating expenses fell in key administrative and marketing lines. That disciplined spending allowed adjusted earnings before interest, taxes, depreciation, and amortization to stay positive for consecutive reporting periods.

    Shifting Focus to Core Margins

    Merchant solutions and offline partner services formed the primary engine for the operating result. The company focused resources on profitable transactions rather than subsidizing top-line gross merchandise value across low-margin consumer retail categories.

    For investors, the divergence between positive EBITDA and a statutory net loss points directly to non-operating factors. Net results reflect mark-to-market adjustments on investments and financial assets rather than everyday cash burn from core commercial units.

    Regional Platform Competition

    Across Southeast Asia, online marketplaces have abandoned customer acquisition subsidies to protect cash reserves. Bukalapak took that step earlier than its regional peers, pivoting away from direct competition in mass consumer e-commerce to protect its balance sheet.

    Competitors across Indonesia continue to face intense margin pressure from social commerce platforms and fast-delivery networks. By prioritizing specialized commerce niches and physical kiosk networks, the group avoided the heavy promotional spending draining rival platforms.

    Balance Sheet and Next Steps

    Earlier quarters established the foundation for this operating run as leadership cut peripheral projects and reduced headcounts. The first-half figures confirm that core operations can run without burning operating capital, even as accounting valuations weigh on statutory net income.

    Attention now turns to the third-quarter earnings release, where sustained adjusted EBITDA and narrowing bottom-line losses will determine whether full-year operational targets stay on schedule.

  • Nike Shares Drop to 12-Year Low as China Slump and Product Overhaul Delay Recovery

    Nike Shares Drop to 12-Year Low as China Slump and Product Overhaul Delay Recovery

    Nike shares dropped 8 per cent to 32.22 dollars on Friday. The drop followed deeper projected sales declines through 2028 and another round of job cuts.

    The stock now trades at its lowest level in 12 years. It is down more than 80 per cent from its 2021 peak of about 175 dollars. Earnings and market value have both halved since chief executive Elliott Hill came out of retirement in October 2024 to lead a corporate turnaround.

    Delayed savings and revenue pressures

    Management disclosed that financial benefits from its current restructuring program will not flow through until fiscal 2029 and 2030. That extended timeline forces the company to absorb lower revenue across wholesale partners and direct-to-consumer storefronts. Working through excess stock remains a hurdle.

    Three core segments continue to drag on performance: classic sportswear, the Jordan brand, and the Greater China business. Together, these categories generate more than half of Nike’s total revenue. Any recovery depends on stabilizing demand in those lines.

    Wholesale friction across Asian retail corridors

    For department store operators and multibrand sneaker retailers across Asia, the slow recovery alters floor plans. Retailers previously relied on high-margin Jordan releases and volume lifestyle sneakers. Many have reallocated shelf space to competitors that offer clearer product roadmaps and faster inventory turns.

    Nike previously cut back wholesale allocations to chase higher digital margins, a decision that damaged long-term relationships with Asian distributors. Hill has worked to restore wholesale supply agreements over the past two years. Still, retail partners are no longer guaranteeing premium display real estate without stronger consumer pull.

    Discounting risks in mainland China

    In mainland China, consumer spending has shifted toward value. That shift forced Nike to clear discounted inventory across digital platforms and factory outlets. Heavy promotions eroded brand equity in tier-one and tier-two cities, where local sportswear brands and specialized performance labels have gained market share.

    RBC Capital Markets analyst Piral Dadhania noted that revenue pressure is unlikely to ease quickly. “Things are going to get worse before they get better,” Dadhania said.

    The steps that led to the slump

    Strategic pivots made earlier in the decade created the current downturn. At the time, the business prioritized direct-to-consumer sales, reduced tie-ups with wholesale distributors, and leaned on lifestyle iterations of existing footwear franchises rather than new athletic performance models. Hill returned to reverse those missteps. He trimmed headcount by 1,400 staff earlier in 2026 and refocused development on core sports.

    Investors and retail partners now look to Nike’s upcoming investor day on November 16 and 17. Executive leadership must present a multi-year roadmap detailing product delivery schedules and margin targets for the fiscal year ending in May 2028.

  • Fonterra Annual Profit Jumps to NZ$2.6 Billion on Mainland Sale

    Fonterra Annual Profit Jumps to NZ$2.6 Billion on Mainland Sale

    Fonterra lifted its full-year net profit after tax by 142 per cent to NZ$2.6 billion ($1.6 billion) following the sale of its consumer arm.

    Operating profit jumped 97.6 per cent to NZ$3.4 billion for the fiscal year ended July 31. That figure included a NZ$1.2 billion gain from selling the Mainland Group consumer business.

    The Auckland-based dairy co-operative completed the Mainland sale in March, handing over brands including Anchor, Mainland, Perfect Italiano and Anmum. Stripping out the divestment, underlying operating profit rose 20 per cent to NZ$1.8 billion from NZ$1.5 billion a year earlier. Total cash distributions reached NZ$12.42 per fully shared-up farmer shareholder. That comprised a NZ$10.42 operating payout and a NZ$2.00 capital return from sale proceeds.

    Balance sheet overhaul and debt reduction

    Fonterra used the divestment proceeds and operating cash flow to cut adjusted net debt by NZ$967 million. Total debt fell to NZ$1.7 billion. Gearing dropped to 21 per cent from 24 per cent twelve months prior. Debt to earnings before interest, tax, depreciation and amortisation fell from 1.1 times to 0.7 times, giving the business headroom to absorb farmgate commodity swings.

    Underlying earnings per share rose 31 per cent to 71 New Zealand cents from 54 cents in FY25. Underlying return on capital reached 14.2 per cent. That result beat the co-operative’s target band of 10 to 12 per cent.

    Processing volumes counter farmgate price drop

    Milk collections reached 1,571 million kilograms of milk solids across the season, up 4.1 per cent year-on-year. That set a ten-year processing record for the group. Higher factory throughput spread fixed costs across a larger volume base and improved plant utilisation.

    Higher processing volumes helped shield earnings from softer commodity rates. The final Farmgate Milk Price settled at NZ$9.69 per kilogram of milk solids, down from NZ$10.16 in the previous season. Global milk supply recovered across Europe and the Americas during the period.

    Early recovery against post-sale targets

    The co-operative beat its internal recovery schedule by two years. Management had planned to take three years following the Mainland exit to rebuild underlying operating profit to NZ$1.7 billion. Higher product stream margins pushed the core business past that mark in year one.

    For food manufacturers and retail private-label buyers across Southeast Asia and Greater China, the restructured business now functions strictly as an ingredients and foodservice supplier. It no longer competes as a brand owner on retail shelves. The divestment removed channel conflict with Asian supermarket clients, though it concentrates group revenue on volatile global dairy trade benchmarks and industrial buyers.

    Earnings momentum into the next milk season

    Asset sales in South America and China farming hubs preceded this final exit from overseas retail consumer operations. Fonterra shares traded at NZ$8.30 in Wellington after the release. That put the stock near the upper limit of its 52-week trading range of NZ$6.14 to NZ$8.49.

    Chief Financial Officer Andrew Murray stated that holding product stream returns near FY26 levels would keep earnings on track through the next cycle. Investors and ingredient buyers now look to Fonterra’s opening farmgate forecast update in November to gauge early Southern Hemisphere spring production volumes.

  • Costco Posts Stronger Sales as Fuel Savings Drive Membership Traffic

    Costco Posts Stronger Sales as Fuel Savings Drive Membership Traffic

    Costco Wholesale beat earnings expectations for its fiscal fourth quarter. Cheap fuel prices drove customer traffic, lifting full-year petrol savings for members to US$3.2 billion.

    Higher pump prices across global markets inflated raw, unadjusted comparable warehouse sales by close to 270 basis points in the quarter ended August 31.

    Fuel traffic feeds warehouse volume

    Chief executive Ron Vachris told investors that lower forecourt pricing drove foot traffic across the international warehouse network all year. Costco undercut conventional service stations on fuel. That pulled motorists onto the property and straight into aisles for bulk groceries and merchandise.

    Fuel inflation added close to 2.7 percentage points to unadjusted comparable store sales between June and August alone. Shares in the warehouse club rose 2.93 per cent after the release as investors tracked steady renewal rates and volume gains.

    Inflation alters shopper spending

    Warehouse operators benefit when energy costs climb and household budgets tighten. Higher pump prices squeeze discretionary spending. Discount retailers with forecourts grab market share from traditional grocers by offering immediate relief on petrol bills.

    That forecourt pricing creates a hurdle for competing supermarket chains and suppliers. Rivals without petrol pumps struggle to match the footfall conversion wholesale clubs generate during spikes in energy costs.

    Energy markets shake wholesale margins

    International oil markets saw sharp swings alongside rising debt yields during the period. Benchmark crude climbed on regional supply tensions and export route threats. Prices then pared gains as diplomatic talks sought to protect shipping flows.

    Costco absorbed volatile commodity costs by leaning into high transaction volumes. It kept fuel margins thin while collecting predictable recurring revenue from core annual memberships.

    Monitoring the next renewal cycle

    Persistent input cost pressures continue as interest rates stay elevated across major economies. Results from the August quarter show membership loyalty holds firm when value pricing is visible at the pump.

    Attention now turns to whether fuel volume gains continue to translate into general merchandise sales across overseas networks. Investors will track membership renewal rates and comparable store sales in the filing for the first quarter of fiscal 2027.

  • H&M Shrinks Asian Footprint to 886 Stores as Regional Sales Edge up 4 per Cent

    H&M Shrinks Asian Footprint to 886 Stores as Regional Sales Edge up 4 per Cent

    H&M Group closed 54 stores across Asia, Oceania and Africa over nine months to August. That trimmed its regional footprint to 886 locations. Regional sales for the quarter still rose 4 per cent.

    Group-wide revenue for the three months to August 31 reached SEK 57.2 billion ($5.8 billion). That was an increase of just 1 per cent in local currencies, as a stronger Swedish krona erased top-line gains.

    Operating profit climbed 23 per cent to SEK 6.04 billion, beating market forecasts of SEK 5.14 billion. The operating margin widened to 10.6 per cent from 8.6 per cent a year earlier. One-off refunds from US tariff payments accounted for 1.6 percentage points of that margin increase. The company confirmed those credits will not repeat in coming quarters.

    Pruning the Asian Store Network

    Physical retail space continues to shrink across Asia, Oceania and Africa. The regional network stood at 940 locations in November 2025 before net closures reduced the tally to 886 by the end of the third fiscal quarter.

    Management has paired store closures with selective rollouts for higher-margin labels. The group introduced COS to India in October 2025. It is betting affluent urban shoppers will back premium concepts as core H&M outlets leave marginal shopping centres.

    “We are able to get product from having a first rough idea to the customer in six weeks, and when we talk about shortening the lead times, it is about increasing the share that we buy in that way,” said chief executive Daniel Erver.

    Online transactions now generate more than 30 per cent of total sales. That growth has accelerated the push to refit existing flagships. The company has modernised a fifth of its 4,000 global stores rather than adding floor space.

    Rival Pace and Regional Margins

    H&M faces pressure from both ends of the fashion market in Asia. Zara owner Inditex reported a 9 per cent sales increase in constant currency in August, outpacing H&M through rapid stock turnover.

    Discount competitor Shein continues to capture budget market share across Southeast Asia and East Asia, squeezing the middle price bracket where H&M operates. Landlords in tier-two Asian malls face falling footfall. That drop leaves retailers with less bargaining power over fixed leases unless their sales density improves.

    Shifting logistics hubs has added further friction. A warehouse closure in Belgium disrupted stock flows into international distribution channels earlier this year. Transport bottlenecks in the Middle East compounded those freight delays.

    Decarbonising the Manufacturing Base

    Supply chain costs remain exposed to rising energy expenses across South Asia. Fuel price hikes in Bangladesh, a major manufacturing centre for the group, prompted H&M to push suppliers toward renewable power.

    Direct suppliers must complete the phaseout of coal-fired boilers by the end of 2026. This energy shift targets long-term operational resilience as regional fossil fuel tariffs fluctuate.

    European logistics operations are also expanding through 2027 with new facilities. These hubs aim to shorten shipping cycles and improve product availability across digital channels.

    The Next Trading Targets

    Recent store closures follow a difficult 2025 fiscal year. H&M shuttered a net 105 stores across Asia, Oceania and Africa during that period, driving a 7 per cent reported revenue drop in Swedish krona terms.

    Early autumn trading shows little acceleration. September sales are projected to grow 1 per cent in local currencies, matching the flat trajectory of the third quarter.

    Investors and retail partners are watching the fourth-quarter gross margin to see if shorter lead times can protect full-price sales without discounting once temporary tariff credits vanish.

  • Goldman Raises Asia Pacific Ex-Japan Index Target to 1,120

    Goldman Raises Asia Pacific Ex-Japan Index Target to 1,120

    Goldman raised its forecast for the MSCI AC Asia Pacific ex-Japan Index to 1,120 from 1,080, projecting a 26 per cent upside driven by higher earnings expectations in Korea and Taiwan.

    Second-quarter earnings across the benchmark grew 102 per cent, with 44 per cent of companies beating forecasts compared with 27 per cent that missed.

    Earnings growth was led by Singapore, Taiwan and Indonesia, while Australia, Malaysia and India lagged, with Singapore and Taiwan recording the highest number of firms exceeding expectations.

    North Asian Tech Dominates the Rally

    The bank assigned an overweight rating to Japan, South Korea, Taiwan and mainland China A-share equities. South Korea’s benchmark Kospi received a revised 12-month target of 12,000, representing a 79 per cent upside from current trading levels, underpinned by heavyweight chipmakers Samsung Electronics and SK Hynix.

    By contrast, Hong Kong, Singapore, Malaysia, India and offshore Chinese equities remain rated at market weight. Southeast Asian markets face a split outlook, with Thailand, Indonesia and the Philippines assigned underweight ratings alongside Australia.

    Consumer Retail and Hardware Divergence

    Sector allocations show a sharp divide between capital-intensive tech manufacturing and consumer-facing retail. Goldman designated tech hardware, semiconductors, capital goods, healthcare and non-Australian, non-Chinese lenders as its most favored sectors.

    Consumer retail, media and property remain ranked at market weight across the region, reflecting steady but unspectacular domestic consumer demand. Transportation, utilities and automotive manufacturers received underweight ratings.

    Earlier Forecast Trajectory

    The revised projections build on earlier upgrades from May, when Goldman set an initial 12-month Kospi target of 9,000 before tech earnings accelerated. The broader index target of 1,120 reflects cleaner investor positioning following recent portfolio unwinds across regional exchanges.

    Investors now track third-quarter tech hardware order books and upcoming United States midterm election policy rhetoric, which remain key external risks alongside elevated bond yields and Middle East tensions.

  • Mixue Closes 89 Overseas Stores as First-Half Profit Drops 15%

    Mixue Closes 89 Overseas Stores as First-Half Profit Drops 15%

    Mixue cut its overseas footprint by 89 stores in the first half of 2026, driven by closures across core Southeast Asian markets Vietnam and Indonesia.

    Net profit fell 15 percent year on year to 2.32 billion yuan, even as total revenue edged up 2.3 percent to 15.2 billion yuan ($2.26 billion). Group filings show higher selling and distribution expenses ate directly into margins across its franchise network.

    Rising Distribution Costs Squeeze Margins

    The Henan-headquartered drinks giant operated 63,987 outlets globally by June 30, with 59,609 locations in mainland China. That leaves roughly 4,378 international stores, concentrated heavily in Southeast Asia where the brand sells budget soft-serve ice cream and milk tea.

    Mixue did not publish country-level closure totals for Vietnam or Indonesia. The company stated in its interim report that reducing store density improved individual unit quality and created a cleaner base for sustainable operations.

    Franchisee economics have tightened across the region. Rapid street-level expansion in major cities sparked cannibalisation between neighbouring outlets, forcing operators to absorb higher logistics costs on imported syrups and packaging without room to raise retail prices.

    Rebalancing Southeast Asian Footprints

    Vietnam was Mixue’s first international market when the chain launched in Hanoi in 2018. By September 2024, the brand ran 1,304 stores across the country, according to its Hong Kong listing prospectus filed in early 2025.

    Mass-market tea and coffee chains in Southeast Asia now face heavier competition from local discounters and Chinese rivals copying the low-price franchise playbook. Mixue’s retreat from sheer store count growth signals that overseas networks cannot rely solely on relentless opening schedules to deliver profit.

    Investors now await Mixue’s updated capital-raising timeline in Hong Kong, where full-year store productivity figures will test whether the overseas pruning protected operating cash flow.

  • Central Retail First-Half Profit Jumps 35% to $155 Million

    Central Retail First-Half Profit Jumps 35% to $155 Million

    Central Retail posted a 35 per cent increase in first-half net profit to 5.0 billion baht ($155 million), driven by grocery gains and aggressive store pruning in Thailand and Vietnam.

    Total revenue from continuing operations rose 2.4 per cent to 123.7 billion baht ($3.9 billion), with grocery accounting for 46 per cent of all sales.

    Store and online sales rose 2.2 per cent across the network, beating a 2.2 per cent expansion in total retail selling area. Gross margins widened by 110 basis points to 24.8 per cent, outpacing operational cost growth. Finance costs dropped sharply, while profit contributions from a newly acquired 40 per cent stake in JD Sports lifted the bottom line.

    Pruning hardlines and shifting to athleisure

    The conglomerate closed 11 branches of Power Buy, B2S, and Officemate over the past 12 months. It also severed 39 stores in April by exiting the NK appliance retail business in Vietnam. Hardlines revenue fell 2.9 per cent during the half, or 0.5 per cent when excluding the NK divestiture.

    Fashion sales edged up 2.1 per cent. Central Retail took its minority stake in JD Sports partly to overhaul sports merchandising at its proprietary Supersports chain, shifting shelf space toward high-turnover athleisure ranges.

    Food delivered the bulk of operating momentum. Grocery sales increased 6.1 per cent, recording same-store sales growth of 2 per cent in the first quarter and 3 per cent in the second quarter. Overall group same-store sales slipped 0.1 per cent for the six months, dragged down by two-year stacked declines of 7.5 per cent in hardlines and 5 per cent in fashion.

    Uneven regional recovery

    Across Southeast Asia, diversified retail conglomerates have spent the past two years ditching fragmented specialty formats to defend supermarket cash flow against inflation. Central Retail mirrors regional peers that expanded fast into bulky non-food retail during low-rate cycles, only to find floor space unproductive once discounters and online platforms undercut consumer electronics and stationery.

    Trading conditions remain split between its two core markets. In Thailand, high household debt and slow tourism recovery continue to curb discretionary spending, even with the central bank lifting its 2026 economic growth forecast to 1.9 per cent. Vietnam provides stronger retail momentum, backed by rising inbound tourism and state efforts to lift domestic consumer spending.

    Central Retail now manages 3,834 stores and 75 shopping centres with 779,000 square metres of net leasable area across both countries. Investors are watching third-quarter same-store sales figures to see whether hardlines and fashion can pull out of negative territory.

  • Chagee Same-Store Sales Fall 16.1% in China as Network Shifts Direct

    Chagee Same-Store Sales Fall 16.1% in China as Network Shifts Direct

    Chagee posted a 16.1 per cent drop in same-store gross merchandise value across Greater China for the second quarter, marking its fifth consecutive quarter of double-digit declines at home.

    Total revenue for the Nasdaq-listed tea chain edged up 2.5 per cent year on year to RMB3.4 billion (US$503.3 million) in the three months ended June 30, while operating income jumped 387.6 per cent to RMB524.7 million. Total gross merchandise value fell 5.5 per cent to RMB7.66 billion, weighed down by a 9 per cent contraction in Greater China to RMB7.16 billion.

    Network shifts to corporate stores

    Chagee is responding to cooling domestic demand by buying back franchised outlets and running them directly. In Greater China, company-operated stores jumped from 164 to 624 over the past twelve months, while franchised locations declined from a peak of 6,836 in September 2025 to 6,616.

    Those company-owned outlets made up 11.6 per cent of the total network at the end of June but generated 27.5 per cent of overall revenue. Direct-store revenue climbed to RMB940.6 million, offsetting an 18.1 per cent fall in franchise revenue to RMB2.47 billion. Meanwhile, active members fell from 50 million in the first quarter to 47.1 million.

    China’s beverage chains are grappling with the aftermath of an aggressive 2025 delivery platform price war that drove cup prices down to single digits. While rivals like Mixue and Heytea rely heavily on deep discounting and sheer store density, Chagee is attempting to lift unit margins by consolidating ownership of its best locations.

    Overseas footprint doubles

    Outside China, gross merchandise value rose 114.3 per cent to RMB504 million. Chagee expanded its international footprint to 399 stores from 208 a year earlier, with initial momentum in new territories including South Korea, where its first three Seoul locations sold more than 16,000 cups in three days.

    Yet existing international stores are feeling the same demand pressures as domestic sites. Overseas same-store GMV declined 15.1 per cent during the quarter, steepening from a 12 per cent drop in the first three months of the year.

    Investors will watch whether the pace of franchise buybacks can stabilize network revenue before international same-store sales deteriorate further in the third quarter.

  • Comvita Swings to NZ$7.7 Million Annual Profit on Honey Reset

    Comvita Swings to NZ$7.7 Million Annual Profit on Honey Reset

    New Zealand Manuka honey producer Comvita swung to a net profit after tax of NZ$7.7 million for fiscal 2026, rebounding from a NZ$104.8 million loss a year earlier.

    Operating profit reached NZ$14 million for the twelve months ended June 30, reversing a NZ$29 million operating deficit booked during the previous financial year.

    Margin Recovery and Cost Discipline

    Gross profit climbed 38.8 per cent to NZ$114.8 million across the period. That performance expanded the group gross margin to 53.9 per cent as efficiency measures took hold across manufacturing and inventory handling.

    The return to the black follows an intensive reset programme that targeted operational costs after heavy inventory impairments and market softness damaged earnings in fiscal 2025.

    Asia Demand and Export Execution

    Comvita built its business on premium functional food demand across Greater China, Southeast Asia and North America. Premium specialty honey brands in the region spent the past two years battling cautious consumer spending, cross-border channel resets and distributor destocking across East Asian department stores and cross-border platforms.

    Market attention now turns to export volume trends in Asian retail channels over the first half of fiscal 2027 to verify whether the margin gains hold up in core consumer accounts.

  • Hundreds of Asian Corporate Heavyweights Report Earnings in Peak Week

    Hundreds of Asian Corporate Heavyweights Report Earnings in Peak Week

    About 370 constituents of the MSCI Asia Pacific Index will report financial results this week, testing consumer demand across China and the resilience of hardware supply chains.

    The reporting group represents roughly 30 percent of the benchmark’s more than 1,200 member companies. Corporate updates from heavyweights across transport, consumer retail, energy, and component manufacturing will land over five consecutive trading sessions.

    Consumer and Automotive Focus

    Automotive manufacturer BYD Co. Leads the consumer batch as price competition across the electric vehicle sector shapes domestic delivery numbers and regional export margins. At the high end of retail, heritage jewellery brand Laopu Gold Co. Presents numbers that reveal how affluent shoppers in mainland shopping hubs are allocating capital.

    For retail and brand operators across Greater China, performance figures from domestic leaders provide a direct gauge of discretionary spending power. Previous reporting cycles showed shoppers trading down in mass categories while allocating funds toward premium gold assets and domestic electric mobility brands.

    Hardware and Industrial Benchmarks

    Technology components and infrastructure suppliers also feature heavily in the schedule. Optical transceiver maker Eoptolink Technology Inc. Reports alongside energy group PetroChina Co., offering detail on corporate spending in artificial intelligence architecture and baseline energy consumption.

    Investor attention centres on operating margins and forward order guidance across both consumer platforms and hardware exporters as balance sheets post through Friday.

  • Lanvin Group Narrows First-Half Loss to €34.6 Million as Store Closures Bite

    Lanvin Group Narrows First-Half Loss to €34.6 Million as Store Closures Bite

    Shanghai-based Lanvin Group narrowed its first-half adjusted EBITDA loss to €34.6 million as store closures and restructuring outpaced a 12.9 per cent revenue drop to €100.8 million.

    The New York-listed luxury group cut its adjusted EBITDA loss from €52.2 million a year earlier, achieving its first period since listing where operating cuts exceeded top-line decline. The prior-year base excludes Italian tailor Caruso, which the company sold in February to Abu Dhabi-backed MondeVita.

    Management closed 23 directly operated stores during the six months to June 30, bringing its active boutique network down to 151 sites. Over the past 18 months, the company has eliminated 74 stores from a peak of 225, cutting its physical footprint by a third to curb overhead.

    Mixed fortunes across four fashion houses

    St John overtook the namesake maison to become the group’s largest revenue contributor, generating €35.5 million. While that represented a 10.5 per cent decline in euros, sales fell roughly 5 per cent in US dollars, helped by a 31 per cent jump in e-commerce. Chief commercial officer Mandy West, promoted in March, will roll out two capsule collections during the second half.

    Austrian skinwear label Wolford delivered €31.0 million, down 6 per cent. Direct-to-consumer sales slipped 2 per cent while e-commerce expanded 22 per cent, lifting gross margin four percentage points to 60 per cent following the resolution of earlier supply chain bottlenecks. Marco Pozzo took over leadership of the brand in February.

    Revenue at flagship house Lanvin slid 17.9 per cent to €22.9 million, making it the group’s third-largest unit. Barbara Werschine took charge as chief executive in May following stints at Hermès and Eric Bompard, while designer Peter Copping presented his winter 2026 collection in Paris. Footwear brand Sergio Rossi remained the weakest unit, tumbling 28.6 per cent to €10.9 million after artistic director Paul Andrew departed in January and the business phased out third-party manufacturing contracts.

    Asset-light transition across global operations

    Chinese luxury groups that expanded through European acquisitions have spent the past two years paring down overhead to adjust to weaker global wholesale demand. Greater China generated 8.1 per cent of Lanvin Group’s sales last year, leaving the company heavily exposed to European and American department store channels where foot traffic has softened. Trimming company-owned real estate while shifting brands toward licensing mirrors the defensive posture adopted by mid-tier European fashion houses.

    Chairman Zhen Huang expects the broader corporate transformation to wrap up before the end of the year. The group is now preparing second-half wholesale deliveries and expanding asset-light franchise partnerships across Sergio Rossi and Lanvin.

  • Esprit Posts HK$87.7 Million First-Half Loss as Licensing Pivot Stumbles

    Esprit Posts HK$87.7 Million First-Half Loss as Licensing Pivot Stumbles

    Esprit Holdings swung back into the red with a net loss of HK$87.7 million (US$11.2 million) for the first half of 2026. Revenue for the six months to June totaled just HK$14.9 million ($1.9 million), reflecting the brand’s radical downsizing into a pure licensing shell.

    The result reverses a brief HK$1.3 million profit recorded a year earlier. Esprit has booked a full-year profit only once since 2016, racking up more than $1 billion in cumulative losses while shuttering store networks and liquidating units across Europe and North America. In June, the company deconsolidated its Canadian business following local insolvency filings.

    Balance-sheet cash generation was minimal, with net cash inflow standing at $712,000 for the period. Total assets stood at HK$295.45 million against liabilities of HK$232.19 million, supported by HK$335 million in total credit facilities, of which HK$125.13 million was drawn at the end of June.

    Accumulating Legal Claims

    Legal liabilities from defunct operational entities continue to drain group reserves. In July, the International Court of Arbitration ordered Esprit to pay $3.93 million and HK$40,900 plus interest over disputed 2024 legal fees, forcing an additional HK$22.5 million charge on top of earlier provisions.

    A Dutch bankruptcy trustee handling the collapse of Esprit Europe is seeking up to 49 million euros ($57.1 million) over contested intra-company transfers. Esprit contends the claim is unenforceable in Hong Kong courts. A separate dispute over an early lease termination poses an estimated HK$14 million exposure.

    Retail Partners and Royalties

    Under acting chairman Bradley Wright, the company has staked its survival entirely on collecting royalties from third-party partners. Licensees handle inventory, logistics, and store operations across Asia and the Americas while Esprit trades as an asset-light trademark owner.

    In Hong Kong, Esprit’s licensee opened a second location with a flagship store at Olympian City. Mainland Chinese partners sell across Tmall, Douyin, Vip.com, and JD.com while pushing the brand into activewear. In North America, the local licensee placed retro logo fleece sweatshirts into Costco in the United States and Walmart in Canada in July.

    The shift mirrors the path taken by troubled apparel names across the region that abandoned direct retail in Asian markets in favor of wholesale brand licensing. Stripping away direct operating costs lowers overhead quickly, but the model leaves Esprit dependent on wholesale discounters and cut-price online channels that risk diluting whatever brand equity remains from its 1980s peak.

    Attention turns next to the legal jurisdiction dispute in Hong Kong, where proceedings on the 49 million euro Dutch trustee claim will test whether Esprit’s offshore corporate structure can protect its remaining HK$63.26 million in net assets from European creditors.

  • Giordano Profit Drops 9% to HK$121 Million as Middle East Sales Slump

    Giordano Profit Drops 9% to HK$121 Million as Middle East Sales Slump

    Giordano’s first-half profit after tax dropped 9 per cent to HK$121 million as revenue slipped 1 per cent to HK$1.9 billion (US$243 million). A sharp sales contraction across Gulf Cooperation Council markets dragged down the Hong Kong-listed retailer during the six months ended June 30.

    Management pinned the downturn on Middle Eastern disruptions that began hitting regional trade in March. Excluding the Gulf business, underlying revenue rose 0.4 per cent, supported by steady demand in core Asian territories and a 12.5 per cent expansion in online sales.

    Pricing Shifts and Margin Gains

    Gross margin climbed 1.6 per cent during the period. The margin improvement followed a deliberate channel shift away from lower-margin wholesale volume, tighter product pricing, and cost reductions across production.

    For Asian apparel chains running international store networks, regional diversification usually provides insulation from domestic slumps, but leaves earnings vulnerable to distant geopolitical shocks. Giordano protected its unit margins through tighter price discipline, yet lower store turnover in the Middle East quickly eroded operating profit.

    Rebranding and Western Push

    The business is currently in the second year of its five-year “Beyond Boundaries” restructuring plan. Management wants to restore top-line momentum by overhauling existing lines and entering new regions.

    Execution now turns to the rollout of the Giordano 2 brand refresh, while the company prepares digital launches in North America and Europe alongside a brand relaunch across India.

  • Ampol Convenience Earnings Rise 12% to $299 Million in First Half

    Ampol Convenience Earnings Rise 12% to $299 Million in First Half

    Ampol Limited lifted its convenience division earnings 12 per cent in the first half of 2026, riding out global oil market volatility linked to Middle East tensions. Adjusted earnings before interest, tax, depreciation and amortisation for the retail network reached $299 million on a replacement-cost basis.

    Earnings before interest and tax in convenience climbed to $204.5 million for the six months ended June 30. Across the wider group, underlying net profit after tax on a replacement-cost basis reached $857.2 million.

    Volume Gains on the Forecourt

    Convenience fuel sales volumes rose 2.4 per cent during the half. Growth centered on base-grade petrol and standard diesel, helped by steady product availability across company-controlled forecourts while wholesale supply chains faced regional shipping constraints.

    Higher pump throughput carried additional foot traffic into store aisles. The shift toward value-oriented base fuels reflects tighter household budgets across Australian metro and regional markets, where motorists continue to trade down from premium fuel grades.

    Shifting Margins Across the Network

    Forecourt operators across Australia and Southeast Asia face a tricky balancing act between volatile wholesale procurement costs and sticky retail shop margins. Competitors such as Viva Energy and standard supermarket-aligned fuel sites have stepped up food and drink promotions to offset lower margins on refined fuel imports.

    Ampol relies on its domestic refining and supply infrastructure to keep supply steady when geopolitical shocks disrupt trade routes. The focus turns to whether retail shop baskets can hold their value into the second half as motorists watch day-to-day spending at the register.