Bauhaus expects $60m loss
Fashion group Bauhaus International has warned it expects a net loss of more than HK$60 million (US$7.73 million) for the six months ended September 30.
This preliminary assessment compares with a profit of HK$26.6 million for the same period last year.
Chairman Wong Yui Lam says the loss is mainly the result of streamlining its retail networks as well as adverse same-store sales performance, particularly in Hong Kong.
Same-store sales for the group’s self-managed shops have declined 14 per cent overall year-on-year over the six months ending September 30.
In Hong Kong and Macau the drop was 17 per cent, with Mainland China declining 5 per cent and Taiwan by 3 per cent.
As at September 30, the group had 199 self-managed shops – 15 fewer than as at the end of March. There were 82 shops in Hong Kong and Macau (down four), 89 in Taiwan (down five) and 28 in China (down six).
In July, Inside Retail Hong Kong reported the company’s same-store sales slid 13 per cent year-on-year in its first quarter to June 30.
The group’s turnover is mostly from its major in-house labels like Salad, Tough and 80/20, and licensed brands including Superdry.
The group’s interim results for the six months are expected to be published on or before the end of next month.