Trinity Limited loses $169m in first half
Premium menswear retailer Trinity Limited, which covers greater China, Singapore and Europe, has announced a core operating loss of HK$169.9 million (US$21,904,775 million) for the first half of this year.
Its revenue of HK$890.8 million was a 11.5 per cent fall from the same period last year
Trinity says it continued to be negatively impacted by dampened consumer spending in priority markets, as well as tough macroeconomic conditions and internal restructuring costs. This was mainly a result of the continued uncertain economic environment in China, and a related decline in tourism and retail spending in Hong Kong and Macau.
As it continued to drive efficiencies, the group reduced its selling, marketing and distribution expenses by 11.6 per cent. It has also closed 16 non-performing stores, its network numbering 333 outlets at June 30.
Following ongoing restructuring, its total workforce has been trimmed from 2738 at December 31 to 2665, mainly because it closed the casualwear production line at its Hong Kong factory and realigned senior management.
“The management team is focused on improving the performance of the company as quickly as possible,” says new CEO Jeremy Hobbins. “The retail environment will remain subdued in the short to medium term, and we recognise the need to quickly and effectively implement further measures to ensure the group can limit the impact of these external challenges.
“We have identified three immediate objectives designed to improve the group’s performance. Firstly, we will continue to optimise our supply chain in order to ensure the best possible merchandise is in our stores. Secondly, we have restructured our management team to ensure clear accountability. Thirdly, we are embarking on a major cost-reduction program.”
Hobbins says his priority for the second half of the year is to focus on securing the fundamentals of the business while continuing to serve the needs of core customers on the mainland.
Part of the privately held Fung Group, Trinity licenses its fully owned brands globally. The group manages five international menswear brands: Cerruti 1881, Kent & Curwen and Gieves & Hawkes, which it owns, and D’Urban and Hardy Amies, which are under a long-term licence in greater China and worldwide respectively.